According to USATODAY.com, oil shot up more than $10 today! Analysts say $150 oil possible by Fourth of July. Oil jumps $10 to new high above $138 on prediction - USATODAY.com
The bubble of the commodities market will burst soon enough. Gold was shot down when the FED told large banks if you wish to borrow money from the trough you have to sell your gold positions. Gold then proceeded to gown down 100+ dollars in a week or two to where it sits today. Around 900ish. Oil will soon unwind also when people realize the media has portrayed poor poor USA as being in recession when we are not. Just because large banks made bad loans on houses does not mean the country is in shambles. I highly doubt the citizens of the US will allow the govt to keep growing much longer and will not tolerate more new taxes. In a year or two people will wish to put money back into stocks as they race to find the next big thing... My two cents. But i bought a Prius just in case ;-)
fcc, I think your closing remark encapsulates what's on most everyone's minds: i.e. 'Something is rotten in the state of Denmark,' and we as individuals had better have a back-up plan in place, ready to put into motion, just in case... My two cents on your two cents.
Really isn't much of a bubble, thats what most people don't understand, it might flatten out, but it won't flatten any where near what it should be, oil will stay in the over $100 a barrel range. It will get much much worse before it even remotely heads towards flattening though. Sad part about it is that its all the US's fault, its traders and speculators (wonder how many of them represent the oil companies), the same lending institutions that just got a big taxpayer bailout (they are a big part of the "speculators", GWB's horrific foreign and domestic policies and either GWB or Israel creating panic in the Middle East. OPEC and the Middle East arab countries are just reaping the rewards.
Well, you can't keep throwing printed paper money at Iraq for years and years without killing the dollar. That's part of it. But there is overspeculation as well. OPEC has lost control of pricing.
Funny how gas prices normally go down slightly after Memorial Day, yet they didn't. They just keep going up! With all the money we are spending in the Middle East, you would think we could get a few oil wells out of the deal. High oil prices have raised the cost of everything here. Not to mention it has also put people out of work. Airlines have started laying off employees to compensate for the high fuel costs. The Middle East is laughing at us, while we fight the war on terror they get even more wealthy. When will we stop the madness and help Americans for a change!
Priuschatters who bet infiltrating $4 national avg. gas over the next couple of days may have hit the mark.
Get this. USATODAY.com has revised their story and are now reporting that crude oil has risen over $11 a barrel on the day. Folks, that's over an 8% increase in a single day!
The value of the dollar is declining, which doubly affects the price of oil: 1. oil is priced in dollars, so the price of oil automatically increases as the dollar drops 2. investors buy oil futures as a hedge, which adds to the price increase The bursting of a speculative bubble will only affect the second factor. For a very sensible strategy to address the dislocations caused by the high price of gasoline see washingtonpost.com
Check gold-it closed at almost $25 oz. higher today. Many expect gold to hit around $1500.00 oz. Investors flock to metals in bad economic times. If you think the average person isn't suffering(recession) then you must belong to the super rich class.
Ya, and I watched my Thrift Saving Plan retirement funds vaporize like the disappearing island on "Lost."
Check gold-it closed at almost $25 oz. higher today. Many expect gold to hit around $1500.00 oz. Investors flock to metals in bad economic times. If you think the average person isn't suffering(recession) then you must belong to the super rich class. I follow gold closely. I sold 10,000 dollars of rare gold coins to make my down payment because it was so easy to get a large profit on them right now. I also know that gold was at 1030 before the fed popped that bubble without even trying when bear stearns tanked. The average person needs to live average. No more cell phones for every member in the family. No more big package cable TV. No more eating out every other day for lunch and dinner. How about making prepared dinners instead of the quick and easy (more expensive) already prepared dinners. How about thinking down the road that driving an SUV might cost more then they think gas wise? How about little jimmy gets a job so he can have some summer play money to afford video games? etc etc etc I clearly remember how I grew up during the late 70s and early 80s. A family with 5 kids where the father and mother both worked and it appeared we were wealthly. I remember getting yelled at big time when my dad saw me using a gas station and getting full service! All in all, the average joe has a lifestyle that is incredibly nice compared to just 25 years ago. Internet, cell phones, fancy cars and more then just one, a nice house if they care to maintain it, AC, microwaves, TV, stereo, etc... The problem is that people are living beyond their means and need to change their habits. Then all of a sudden your budget is not hurt every month by the huge pile of bills. minimal living. but that is just me. I am 33 and just finally got a new car after driving rust buckets all my life. I finally splurged after saving money for years.
nah. everything goes in cycles. the last decades have all been about bubbles. tech bubble. housing bubble. commodities bubble. the US is a major powerhouse. yes inflation numbers are messed around with by the US govt and things like that... but do you really think it was just this administration? how about the last one? dem or repub are all the same it seems... i could just as easily say someone has been paying to much attention to the news media. we could get into fiat currency, inflation, cyclical nature of the economy, and govt debt yet people will always want to think the worst and forget how the US always digs out of it. All i know is that I am starting my research to look for stocks that have been pushed down to all time lows and preparing to invest in them. I am done with commodities like silver and gold and will let others ride them downwards. wait and see. doom and gloom is so passe. great time to be buying a house eh? ;-) you see crap, i see opportunity.
