Legislators Tell Wall Street to “Can It”

U.S. Sen. Merkley and Reps. Blumenauer and Bonamici say that Wall Street speculation is costing middle-class families by driving up the prices of aluminum, copper, gas and electricity.

August 08, 2013

PORTLAND – Earlier this week, Sen. Jeff Merkley (D-OR) and Reps. Earl Blumenauer (D-OR) and Suzanne Bonamici (D-OR) visited Hopworks Brewery in Portland to call attention to Wall Street speculation in commodity markets, which they say is driving up the prices of aluminum, copper, gas and electricity.

“This speculation is in turn raising the prices of everyday products that middle-class families use, including beer cans, home improvement products that contain copper and even gas for cars,” notes a press release.

“Nothing gets an Oregonian madder than messing with our Oregon beer, and that’s just what Wall Street is doing,” said Merkley. “We can’t let Wall Street get away with rampant speculation in commodity markets that in turn hurts our middle class families and our Oregon brewers. That’s why I’m calling on our federal regulators to rein in this speculation. Families shouldn’t have to pay a speculation ‘tax’ at the pump, the home repair store and the beer aisle.”

During a Senate Banking Committee hearing two weeks ago, beer manufacturers testified about how the aluminum market has drastically changed in the past few years, driving aluminum prices up through “a convoluted exchange and warehouse system.”

Merkley, Blumenauer and Bonamici sent a letter to financial regulators calling on them to take the necessary steps “to end the speculation driving up the prices” for middle-class families:

“In light of a series of revelations about the relationship between our financial sector and physical commodities, we call on you to use your full regulatory authorities to rein in excessive speculation in commodities and restore the principle that our financial system serves the real economy, helping us build our economy ‘from the middle class out.’”

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