Many analysts have actually highlighted that the run-up of oil prices is inflated by at least 1/3 due to speculation. And so it has been proven. I will list a few reasons for the oil slump...

Tulip bulb mania, one of the earliest signs of “Crowd Madness,” began in the 17th century. It gripped the entire nation and everybody was risking their land, livestock, farms and life savings in exchange for a piece of tulip bulb. What made the mania worse was the use of options which allowed people of lesser means to speculate in tulip bulbs.

With mounting losses (first quarter loss of $2.8 billion), management turmoil and a falling stock price (70% down this year and no sign of reversing), it seems likely that Lehman, the fourth-largest U.S. securities firm, will follow the footsteps of Bear Stearns and be sold at rock-bottom prices.