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Originally Posted by jom  As to the issue of crude oil this is the key. Huge "institutional funds" and the like (which includes Calpers from what I understand) are putting their money into crude oil, hence driving the price up. They need somewhere to put their funds instead of the dollar since it is doing so bad. So the price of crude is really speculative as I've read that the real price shouldn't be any higher than $80/barrel or even less. Expect a "crash" in oil prices at some point....what the effects of this will be on Common Joe I don't know.
This situation is similar to the stock market in the late 90s and the recent crash in real estate. People are jumping from one misguided speculation to another it seems.
jom |
Yes, I heard this also that oil is like what house prices were 1 1/2 years ago...but the difference I think is that if the oil prices every "crash" to a more respectable $80-85 a barrell, we won't see it go down for what 2-3 months?! But tomorrow, gas will be up 5-6 cents. And another thing that kinda boggles my mind is Diesel and AvGas. It's takes nearly 10 steps less to make either, but both are almost $1 more than 87 octane. All the while companies, and the Bush's, post record profits!!!!