icandoitdon

Is the Global Economy Drowning in a Sea of Black Gold?

beans......

i've been investing since you were a gleam in your daddy's eye and i've heard and seen it all including the idiotic notion that "this time it's different." gold bugs thought gold was going to the moon in the 1980s until it crashed and flatlined for about 20 years. same with silver. same with tech stocks in the 90s. same with real estate for about the last 20 years. and yes, the same with oil, which boomed in the 70s into the 80s before crashing hard.

there are only 3 constants in the markets...fear, greed and amatuers who buy into the notion that "this time it's different."

Is the Global Economy Drowning in a Sea of Black Gold?

i have read with amusement the idiotic view put forth by many that speculation has nothing to do with the price of oil...it's all world supply and demand and the next stop in this insatiable thirst would be $200/bbl. there are many reasons for this price run and underlying world demand is about 4th down on the list.

as for the "era of cheap energy" being over, i think i'd wait to see the effects of the next world wide recession before making such a stark judgment. i wouldn't bet the house on it.

Recent Oil Spike: 'Irrational Exuberance'?

daveinhackensack:

"Most of the oil chiefs acknowledged that when measured through the prism of a pre-2005 world, today's oil prices should be far lower."

this was confusing to me too...it suggests to me that he's as confused as anyone why we've seen the magnitude of the current price surge.

Recent Oil Spike: 'Irrational Exuberance'?

dave in hackensack:

here is a link to the prepared testimony of the president of shell oil:

judiciary.senate.gov/p...

following is a link to a news story about his testimony. i believe the $35-$60 oil remark was not part of his prepared testimony but was in a Q&A.

www.mcclatchydc.com/ho...

Recent Oil Spike: 'Irrational Exuberance'?

"Many banks and investment firms have come out to defend the rise in oil prices, saying that it is based on fundamentals and that prices could rise much further."

investment banks say and do nothing that is contrary to their interests. why would anyone give a damn what they say or think?