dlaw

Why Oil and Gold Are Headed Much Higher

Boy, this is a bad call.

Ike vs. Refining Capacity and Oil Price

"Bouncing"? "off" $100?

Possibly you didn't catch the London open.

OPEC: The Saudis Have Left the Building

Y.I. - Yes, actually, Diamond and Dybvig mapped out such a Nash equillibrium, although that was for bank depositors.

But that's half the story. The other half comes when cooperative members of any group receive trustable assurances from each other which have economic value - and that does happen.

It's just the basis for...well,...society. That's all.

OPEC: The Saudis Have Left the Building

If cooperation never works, how do bubbles form?

The author's observations are often extremely good. He should edit out the tired, old, laissez-faire rhetoric.

Oil Datapoints of the Day

Important commentary and thanks so much for pointing out the article.

I would put a slightly different spin on the problem: These oil numbers point out that the world has still not come up with a generalized capital markets approach that works in fact, rather than in theory.

I think what we're seeing is that there's an artificial barrier between the nation-state and the capital markets. The answer is not, as some anarcho-capitalists would suggest, to destroy the nation state. Neither is it to destroy the capital markets.

The answer is to find an accommodation between the two institutions and create institutions that operate at a new level.

The key is for people not to forget no resource can find value absent economic flow and activity. The oil-rich countries are islands, in a sense, but if they come to believe that floating on a sea of petroleum and floating on a sea of petro-dollars is the same thing, they are doomed. Dollars (euros, yen) represent collective effort. Oil is just another useful mineral, like uranium.

How these things are employed is the most important question.