Inflation Trade Breaks Out Across the Board [View article]
You're dreaming if you think we are headed to $150 oil in the coming months. If oil goes to $150, we will be in the next depression.
In order to have inflation you have to have demand. Since people are still getting laid off and not getting raises, where is this demand going to come from? Foreclosures just hit a new all time high.
There may be inflation on Wall Street but there isn't any on Main Street.
"because it is based on supply/demand fundamentals"
Yea right. Gasoline inventories are at 15 year highs. Demand is dropping. So why are the prices at record highs?
There is no current shortage of oil. US inventories dropped because businesses followed a normal business practice of reducing inventory when prices go flying higher. Especially when oil futures went into backwardation last July. There is no incentive or reason for them right now for them to put inventories back where they were 2 years ago.
If OPEC dropped their quotas and prices stayed above $100, there would not be a drop more added to US inventories.
Investment in Commodities for the Coming Decade [View article]
Inflation Trade Breaks Out Across the Board [View article]
In order to have inflation you have to have demand. Since people are still getting laid off and not getting raises, where is this demand going to come from? Foreclosures just hit a new all time high.
There may be inflation on Wall Street but there isn't any on Main Street.
Get Out of Commodities - Barron's [View article]
Yea right. Gasoline inventories are at 15 year highs. Demand is dropping. So why are the prices at record highs?
There is no current shortage of oil. US inventories dropped because businesses followed a normal business practice of reducing inventory when prices go flying higher. Especially when oil futures went into backwardation last July. There is no incentive or reason for them right now for them to put inventories back where they were 2 years ago.
If OPEC dropped their quotas and prices stayed above $100, there would not be a drop more added to US inventories.