I believe we are in an oil bubble right now (as well as a commodities bubble in general).
I have oil stocks, I’m going to start selling out of them to support a charity and of course some real estate projects.
Nope, but that’s a policy they should institute for some people. We’ve kicked out several people for being too fat (22% and 30% blubber for males/females respectively). The kicker is they get severance pay because they were “let go.” Hows that for wasting taxpayers’ money?
Mike,
The great news is you walked off all those McD’s calories and didn’t contribute to “Global Warming.”
Man, I hope your right.
For anyone here who for a second believes all the Bull sh*t about oil demand driving prices take a look at this chart.
http://www.wtrg.com/oil_graphs/oilprice1947.gif
Pay particular attention to the RECESSION years in the early 1990’s. WOW!!! OIL fell through the FLOOR when the world economy slowed down, didn’t it? I wonder what it will do this time??? (I know what it will do, it will do what all bubbles do. BUST!!!)
This chart is almost identical to US housing price charts in 2005. We all know what those charts look like in 2008. Parabolic rise, followed by STEEP (and continuing) DECLINES!
Oil is worth whatever the next fool is willing to pay for it. When the full extent of this GLOBAL recession that we’re NOT having hits those oil markets… WATCH OUT BELOW.
Hey…the real estate markets are reacting EXACTLY the same way they did in the 1990’s recession, why should this recession be any different. When economies SLOW…spending drops… supplies RISE… Then prices fall.
It isn’t rocket science folks!!
NO ONE expects this. That is EXACTLY why it WILL HAPPEN!!!
In the history of the world, whenever a ANYTHING has a parabolic price rise (like oil now) there is only one way those charts end up…
STRAIGHT DOWN!!!
So, are you buying out of the money PUTs on oil futures as far out as you can get them?
So, are you buying out of the money PUTs on oil futures as far out as you can get them?
I was gonna do that, but after I filled up my F-150 and bought a 10-piece Chicken McNuggets for lunch, I didn’t have any money left!!!
Mike
The #1 purchaser of oil futures are investment companies owned by countries such as Saudi Arabia. This is a way that they can protect their investment from the falling demand. Remember supply and demand make up price. We have talked about demand falling, but the media is leaving out the supply aspect of it.
Mike- I’m glad to see that you can still afford the chicken nuggets; however if America keeps investing in nonsense oil alternatives such as ethernol then we might not be able to afford the chicken nuggets either. Ethernol actually eats away at the lining of the of the gas tank and to date the auto manufacturers cannot come up with something that will work. In the meanwhile, our groceries are going through the roof.
Mike- I'm glad to see that you can still afford the chicken nuggets; however if America keeps investing in nonsense oil alternatives such as ethernol then we might not be able to afford the chicken nuggets either.
You’re killin me here!!!
In the meanwhile, our groceries are going through the roof
Not to worry, the government keeps assuring us that inflation is very low - not even worth mentioning really.
Mike (gotta have my McNuggets)