Its not speculators driving up oil prices. The large specs in the energy market are almost net short, while the commercials are almost net long, the small traders are net short. What this means in English is the market is in balance, there is no SPEC bubble. Prices may come down in the near future but hold onto your seat because it is more likely that prices will be close to 300 a barrel before it is over.
We are currently in a Primary BEAR stock market, the DOW bounced off the 200 day average.
When it approaches the March low, the FED bank will panic again and lower interest rates by another 25 to 50 basis points. This will stall the stock price decline but also force the Dollar index to new lows!!!
Oil trades in dollars so guess what oil goes up!!!
Save as much money as you can - because things are going to get worse before they get better. So I don't mean to doom and gloom but the Gov,t has really screwed things up this time.
The only reason we aren't sitting in breadlines right now is the Brazil, Russia, India, China, have punted socialism/communism for free market capitalism. If they can grow without our buying we'll be ok, but if any of those economies slow down the next four years will make the great depression look like a minor recession.
Its no coincidence that Bush appointed Bernancke to head the FED Bank. Bernancke wrote his doctoral thesis on the causes of the great depression, and things that might have been done to prevent it. So, if we skate through this one it will be his doing, However he is almost out of bullits. The good news is after the US economy colapses oil will fall back to 120 a barrel
Oh Yeah did I mention there are over 400 bank owned homes in my zip code alone, A little housing deflation isn't going to help things.
