mlimberg

Oil Bubble Spin

Barnburner...

""As he pointed out, the common wisdom of five years ago was "there are more and more people that need housing and a limited amount of land-there's not place for housing prices to go but up" and, like oil, it was a commodity that people "needed". ""

Farmers said the same thing in the 1970's, farmland, they don't make anymore... but you got to pay the bill for it someday.

Americans today are "Ilfunctional literates":

Individuals who are educated, yet fail to apply basic mathematics, reading and logic to simple everyday contracts.

I saw the housing thing coming because it looked just like the farming mess of the 70's... It will take years for this to correct. In the mean time, banks will fail just like the S&L's did....

Oil Bubble Spin

This information would be true and correct if this was 1970 and China was not buying cars like American kids want iPods? Asians are buying cars like crazy... Where they use to ride the bus to work, they now drive a car. Factories have fewer and fewer bused employees and more and more cars in their parking lots. I see it everytime I go there... not only are they building factories, there are building huge parking lots and expanding parking lots too... So if every one of the cars that are parked there are half full of gas, the increase in demand is apparent. The USA does not determine the price of oil anymore. Asia does. We will see $200/barrel before we see sub $100/barrel oil. Sorry America, no bubble in oil... Gas will be $10/gallon in a few years...