People are cutting back for whatever reason, but the speculators looking for a fast buck don't care. Something is eventually going to give.

 

Not a new high, but oil closed at $110.21/bbl Friday down $.12. It sure jumped quick from $100 to $110.

 

Close to $112 in Asian trading. I am sure that it will rise today on the Sunday rate cut and then again Tuesday after the Fed meets.

 

The next few years are going to look a lot like the late 70's

 

Oil fell $4.53 and wholesale gasoline fell 19 cents as investors might finally be getting spooked by things like the collapse of Bear Stearns.

 

How does that relate to oil? Shouldn't oil remain relatively safe compared to other stocks?

 

No because until now, against the data investors in oil have been using it as a hedge against the falling dollar. They also believed that we may quickly pull out of a recesion. Now with Bear Stearns collapsing it shows a very big sign that the economy is in serious trouble.
A troubled economy tends to use far less enery than a booming one.
Not to mention oil and gas stockpiles are very high right now.

 

Wonder why NOW..they are figuring this out.. When the paycheck to paycheck everyday man has been feeling it for the last 2 years the steady decline and rising problems that have been hitting our economy.

I guess they feel it when they get socked with a million dollar hit. Then they notice. Funny that these are the companies that we rely on to keep our stocks and futures in a competative running with the world. Yet they are falling now. Makes you wonder why they let it go so far? I know why..selfish greed from a corperate to individual level.

I tell you if the things were done to get this country back on track we would be in the black in no time. But we keep letting big business run our lives. That is the recipie for this mess.
The sad thing is they have the money to burn if things get out of hand..does that paycheck to paycheck guy have the same luxury? Nope..

 

Don't forget big government, the fed is just as screwed up with out of control spending as they try and support a bullets and butter policy to the regressive tax system to the free trade fantasy (of course you can make the case that the government is nothing more than the lackey of big business).

 

It is telling that the kind of bailout used to guarantee JP Morgan no loss on the deal has not been done since the great depression. When Greenspan comes out in an election year and says that the economy is the worst since the end of WWII, things are getting bad.

 

It is also telling that the government that reluctantly offered any assistance to airlines after 9/11 , and told carmakers to "make a better product" as opposed to any kind of "bailout", is actually the same government that just OK'ed the special buyout mentioned above in record time over a weekend, huh?

Anyone read the President's radio address "article" in the papers over the wekend?
http://www.journalnow.com/servlet/Sa...=1173354981422
"President Bush said yesterday that the government must guard against going too far in trying to fix the troubled economy, cautioning that “one of the worst things you can do is overcorrect.”

What friggin planet does this guy teleport here from for an hour every day to make appearances and speeches?!?!

The local news Friday announced 3 plant closings in our area and a total job loss of about 2000, then they announced a new company that is relocating from New Jersey and bringing about 140 new jobs to our area with wages in he $20-$35k range.
Whoot! Yippee! Sounds like we are setting it on fire down here in Nawth Cackalakee.
I'm telling you guys... it's bad.

 

I'm readying Greenspans new book write now. He talks about how sometimes he give cryptic or vague statement as to not shake the markets too much one way or another. I think he used WWII instead of the Great Depression for the same reason. He wanted to stress how bad it is going to get without causing a panic.


His book has given me new respect for Bill Clinton too. Greenspan is a life long republican that only has voted republican, but yet says that Clinton was our smartest and one of our best presidents. He says Clintons budget surplus would have whipped out the national debt by 2007 and he actually worried that the Treasury would have too much money someday He also says the Bush tax cuts were a mistake.

In such a short period of time Bush has taken the surpluses that would have ended the debt in his second term and turned it into the largest deficits ever and has doubled the national debt and is pushing our currency to the brink of collapse.

 

Oil is up a few bucks in early trading, many are saying that the rate cut will boost oil prices into the $114-$116 range in the next month. It will be interesting to see how this plays out.

 

Its not just Bush, his asshat buddies the republicans are to blame too, the "fiscally responsible" party got into the majority and went crazy as well.

 

Oil went back up $3.74 today to close near $110 and wholesale gasoline went back up 16 cents. Most are expecting $114-$116 oil in the next week or two.