Next, oil up to $70 per bbl on fears that armpit hair on Palestinians may contain toxic bio-agents that will cause a global problem with Pali BO.
I'm counting the days when this absurd oil bubble pops. Anyone remember the Pacific Rim bubble ala George Soros, or the shorting of the British pound ala George Soros, or the foiled attempt to short the US dollar by Berkshire Hathaway and George Soros and the... ?
The (com)Post must have shared in the Buffy's bad call last December on the dollar:
A modest decline in the greenback would boost the dollar value of America's overseas portfolio enough to wipe out foreigners' "net ownership" of the United States. Moreover, Americans are clever investors -- they earn more from their foreign assets than foreigners earn from their larger stock of American assets -- so Mr. Buffett is himself part of the solution to the problem that he identifies. But the vision of the United States as a sharecropper's society remains distressingly plausible. The country is living beyond its means, spending more than it earns and relying on foreigners to supply the difference. If a future generation of Americans is called upon to tighten its belt to repay overseas creditors, today's ugly economic nationalism may seem mild in retrospect.Shameless. Still, they've got to recoup those losses...
"Next, oil up to $70 per bbl on fears that armpit hair on Palestinians may contain toxic bio-agents that will cause a global problem with Pali BO.
I'm counting the days when this absurd oil bubble pops."
Your first comment above was funny and true. However, I do not see popping of this bubble soon. I am no commodity trader in the pit, but I do not need to be a genius to know demand has indeed grown in Asia which will support higher prices indefinately at this point. When the US was the only big customer on the block big spikes upwards then downward were the norm. Also, evereone who has even a tiny tid-bit of control of this industry from the refiners to the producers to the retailers have been reaping record profits.
Also, the American consumer and economy has proved resiliant to the price increases as a whole, so why would a bubble ever pop as suggested? I argued with so called 'experts' that the price of oil would not drop between July 4th holiday and Labor Day. My forecast is that it will dip back a bit after Labor Day to about $55 a barrel and fluctuate up and down slightly in the market from there.
As one poster put it, we are now reaching the time when creating our own synthetic oil now becomes cost-effective. The foreign oil producers and refiners also know this, so I do not expect to see oil ever going past $75 a barrel. Hey, if Adlop Hitler could run the majority of his war machine in 1943 & 1944 on synthetic oil, then so can America. It just hasn't become important enough.
My last opinion on oil price influence: The 2008 elections are not too far away. The Republicans will not leave office with the price of gas at $2.40 average by 2007 no matter what they need to do.