Confident28

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    • Thu Aug 7th 16:35 PM | Rating: 0 0
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      Greenspan Blasts Housing Bubble He Helped Create
      While the housing bubble may have been a liquidity problem, its not the FED's fault. Between June of 2004 and June 2006 the FED moved the Federal Funds rate up 4% and yet mortgage rates barely climbed more that 1/2% point over that same period. That's theoretically a major shrinkage in the liquidity of the US economy with almost no effect on mortgage rates. The question is, where did all of that money came from to keep longer term (mortgage rates) so low. The answer is the huge current account balance the US has fueled by massive trade imbalances with China and OPEC. Because these nations artificially peg their currency to the dollar they are forced to pour BILLIONS (totaling trillions) of dollars into US markets. It's this massive inflow of dollars that financed the housing bubble.
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    • Fri Jul 18th 14:12 PM | Rating: 0 0
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      Offshore Drilling Isn't the Answer - Supply and Demand Is
      Off-Shore, ANWAR - who cares, they're not cures their diversions from the real problem. The US consumes 20-22 million barrels a day. We currently pump about 1.2 million barrels a day from off-shore oil and 1.4 Million from Alaska. If we even doubled that production without increasing demand you're talking 10% increase?! $.40 at the pump. Not even. The US is in terminal decline so any increase is at best going to keep US production flat. If we're luck we'll still be at $4. a gallon in 10 years. So go ahead and spend billions drilling in ANWAR and off-shore. We'll just be having this same conversation in 10 years (or sooner would be my guess) and have wasted resources chasing a declining commodity.
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    • Fri Jul 18th 13:25 PM | Rating: 0 0
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      The Oil Bubble Will Meet the Same Fate as Tech, Housing
      Oil is not in plentiful supply, at least not the right kind of oil. Not all oil is the same. Do your homework and you'll realize that the highest demanded oil is light sweet crude and its supply peaked around 2005. There just aren't enough refineries in the world that can refine heavy sour crude, and all of that "plentiful" oil out there is getting heavier and sourer. It'll take years and billions of dollars before the refining world catches up.
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