Crude Oil Price Update: Animal Spirits Are Stirring

This is very similar to what is happening to copper prices. Animal spirits are stirring. Stocks are up about 20% in the past two weeks. The global economy is not going down a black hole. Obama has suffered materially from a series of gaffes. He's making it up as he goes. He is being exposed as an amateur. I read the transcript of his 60 Minutes interview and was amazed. He's laughing and making jokes about how the world economy is teetering on the brink, and his interviewer asks, "Are you punch-drunk?"

Whatever is bad for Obama at this point is good for the markets, since it means his chances of successfully pushing his mega-spending, big-government, higher-tax agenda are diminishing. It's even better to see that economic activity is not continuing to decline, and may even be picking up, as this chart suggests. I've been saying that the worst of the economic news hit around the end of last year, and that still looks like a good call.

Comments

[urbanhiker:]

Making it up as he goes, an amateur? Talk about oil, your political knowledge leaves much to be desired. We could go back to the Bush policy- do nothing , corporations can self regulate.

Mar 23 06:37 PM

[LKofScotland:]

i actually agree with urbanhiker. i think "the plan" has always been hyper inflation. insofar as this make you a bad politician on the other hand--well, maybe urban hiker has a donkey he can borrow against because not else is going to be worth much once we become a banana republic.

Mar 23 09:44 PM

[mac.barron:]

Calafia Beach Pundit, do you seriously think that "the chances of [Obama] successfully pushing his mega-spending, big-government, higher-tax agenda" could be significantly reduced by anything less than a timely Torino Scale 10 Event?

Mar 23 10:08 PM

[Ferdinand E...:]

"Punch-drunk". Interesting term. I remember that we used to talk about a boxer 'leaving his fight in the gym', which meant that he trained so hard that he had nothing to give in his 'match'. I hope that the new president didn't leave his fight on the campaign trail, because if he did many democrats are going to be disappointed in a few years, although I won't be one of them. This is serious business, and it requires a serious approach, and if it doesn't get that approach I won't have the slightest problem voting repubican - assuming of course that Governor Palin is not on the ticket.

Mar 24 10:35 AM

[WayneinOregon:]

I thought this was going to be an article on oil, not a distasteful, absurd Obama bashing. Get your act together.

Mar 25 12:40 AM

[Happy aussie:]

The guy who wrote this artical is an idiot, Obama is doing a great job, not only for you amercans, but the world. As an happy Aussie, we wish him the best, and may god help him with a big challenge.

Mar 25 07:47 PM