Comments on: Crude Oil = $52

By: Simon

Simon — Thu, 20 Nov 2008 21:41:46 +0000

I remember the chart Barry posted much earlier in the year showing the price movement of oil during the 70′s oil crises. I think the comment I made then was Look no further….

The difference between now and then are interesting. At that time everyone was not fully loaded with debt. There were actual shortages in supply of fuel. We had a wage price spiral. The worlds population was half what it is now. The baby boomer were just starting to have an impact on the economy.

We are headed for interesting times.

By: Archiphage

Archiphage — Thu, 20 Nov 2008 14:03:56 +0000

Wow! There was the 4 handle, and it didn’t even take the whole day. Interesting times.

By: Mind

Mind — Thu, 20 Nov 2008 13:56:12 +0000

The oil suppliers were selling participation in lower prices for another 25 cents per gallon – most people didn’t take it because they were convinced that prices were only going to go higher.

By: Mark E Hoffer

Mark E Hoffer — Thu, 20 Nov 2008 12:22:50 +0000

what they don’t understand is that if they locked they should have bought puts, and if they floated, they should have bought calls..

sorry, but an 8th Grader could wrap their minds around those ideas, too baa-d our consuMoo-ers are treated like 3rd Graders..

By: Vermont Trader

Vermont Trader — Thu, 20 Nov 2008 12:20:29 +0000

The Fed was right on inflation. Of course no one gives Bernankee any credit for standing his ground while much of the world was in panic. Kinda like the current situation.

By: Archiphage

Archiphage — Thu, 20 Nov 2008 12:09:38 +0000

Some folks here are in the same spot with nat gas. Speculating in futures is not for amateurs.

By: Mind

Mind — Thu, 20 Nov 2008 12:02:52 +0000

Here on outer Cape Cod in New England, last summer the local heating oil distributors finally offered their “fixed-price” contracts for the coming season. They came in around $4.70 – $4.80 per gallon. Some people bought in to this without being able to participate in a lower price if were to occur. The spot price is now around $2.50.

By: Archiphage

Archiphage — Thu, 20 Nov 2008 11:50:54 +0000

Hey, there it is! Peak Oil happened in June 2008! I wonder how long before I see a 4 handle… could be before the end of the day at the rate things are going.

By: Mark E Hoffer

Mark E Hoffer — Thu, 20 Nov 2008 11:16:17 +0000

With Russia and the Gulf States, especially, sucking wind, who’s going to buy our T-Bonds?

Further, with Euroland, Japan, the UK, and the US, at the minimium, expected to run ‘massive economic stimulus’ a la Keynes’ prescription of Fiscal Deficits, who’s left to buy all those ‘Bonds’?