GreenestEgg

Cramer: Dow Could Drop Another 14%, Oil's Going to $50

Curbs-in,
We have seen this leverage game before. They called it the roaring twenties. The only difference was in the aftermath the Fed contracted the money supply by 1/3, whereas Ben is doing his best to flood the market with moolah. Real estate and commodity bubbles are sprinkled throughout history. Every generation gets one or two, which is why the old folks put it in bonds.

$300/Barrel Oil Is Coming - Barron's Interview

It's pretty bold to predict a 300% increase coming on the heels of a 30% decrease. Time to recoup some of that loss, eh Eli?

Back in the late 1990's, it cost about $4/bbl to get oil out of Saudi Arabia. It's obviously more now, but this unlimited demand by SE Asia argument is insane. There is no way that countries with per capital incomes of less than $1000/year will consume the stuff at $300/bbl. 42 gallons = 1 bbl. I doubt if the average Chinese citizen would stake his yearly pay on the privilege of driving a car to work for six weeks.

Somehow, the humans on this planet survived for 10 million years (or 5000 years, depending on how literally you take the bible) without consuming a couple hundred barrels of per capita each per year. We're smart. I'm sure we'll figure something else out. My money is on the 1.21 Jigawatt flux capacitor from BTTF.