ronrag

In a wide-ranging interview with Index Universe, Nouriel Roubini says he doesn't believe in commodities ("rising commodity prices are not justified by the fundamentals"), oil ("I worry that oil is going to go up above $100 for reasons that have nothing to do with the fundamentals of supply and demand"), or gold ("without inflation, or without a depression, there’s nowhere for gold to go").

He is correct on the fact that the price of OIL and other commodities is no longer a matter of supply and demand but rather a matter of price driven up or down by speculation. A regulatory solution to the speculation issue is needed now... we need supply and demand, that is , the actual amount of the commodity vs what is required globally to drive the price. this is the only way we will get a stable commodity value which is what the global market requires for its stability across all markets.

The Fed: On the Cusp of Moral Hazard

First time I saw a nice concise definition of Moral Hazard. I think my kids act this way....LOL