The real reson oil and other commodities are spiking

Here we go again. Here's a piece on the real reasons why oil (and other commodity) prices are spiking right now.

There is some component of normal supply/demand, but excessive (and illegal but tolerated) speculation in commodities-based derivatives (as opposed to legitimate hedging by trading in actual futures) is the main engine of price hikes. These derivatives are much like the CDO's and CDS's that violated the primary rules of honest finance (trade in ownership, not mere bets; insurable interest and reserves for guarantors; many times reasonable levels of leverage)... and caused the meltdown in 08. The financial reform law in 2010 was supposed to make this kind of thing illegal, but the regulatory function is simply not working.