Commodities: A Wise Long Term Investment [View article]
"So the government will need to step in and buy bonds if it has any hope of keeping mortgage rates low and engineering a recovery in the housing market. "
You must mean the FED buying the bonds. The government is issuing them. A sort of freudian slip of the tongue as many people equate the FED with the government.
As it is, the FED collects the interest and the government (the hapless taxpayers) has to stump it up.
Oil: Does Supply and Demand Still Apply? [View article]
This article seems to be part of the effort to talk the spot price down.
It is true that in the long term (say 15-20 years?) alternative energy sources will replace the demand for oil, and make it both cheap again, but in the mean time we do not yet have a hydrogen economy or a solar powered electricity grid yet. Bringing new oil fields into production takes years and a huge investment. The oil majors need the high prices for the giga-investment needed for offshore exploration and production or for shale kerogen/oil conversion.
Commodities: A Wise Long Term Investment [View article]
You must mean the FED buying the bonds. The government is issuing them.
A sort of freudian slip of the tongue as many people equate the FED with the government.
As it is, the FED collects the interest and the government (the hapless taxpayers) has to stump it up.
Ratio of Oil to Natural Gas Falls [View article]
Tank farm operators are doing well in these times.
Natural gas, when not in demand, stays cheaply in the ground.
Oil: Does Supply and Demand Still Apply? [View article]
It is true that in the long term (say 15-20 years?) alternative energy sources will replace the demand for oil, and make it both cheap again, but in the mean time we do not yet have a hydrogen economy or a solar powered electricity grid yet.
Bringing new oil fields into production takes years and a huge investment. The oil majors need the high prices for the giga-investment needed for offshore exploration and production or for shale kerogen/oil conversion.