None of this has caught any leaders by surpise. There simply was nothing that could be done - either practically or (especially) politically. People weren't - and aren't - willing to believe the nature of the crisis we face and therefore aren't willing to bear the pain of adjustment. Since natural laws can't be mocked or avoided the pain will be all the greater.
Those who compare our current situation with previous "bubbles" are in for a rude shock, I think. Oil - unlike tulips - is an absolutely vital commodity and all indications are that there simply is not enough to meet current demand and the future will only make the situation worse. That means demand will be cut the hard way - depression, war, etc.
"So far, Bush is doing and saying the right things. Releasing crude to refiners who need it buys time. And the President has said that government can provide only a limited amount of help and almost none in the immediate future."
Agree.
"Oil - unlike tulips - is an absolutely vital commodity and all indications "
Oil was similarly vital when it dropped from $60 to $10 a barrell back in the 1980s.
"all indications are that there simply is not enough to meet current demand and the future will only make the situation worse. "
Not true. OPEC President has said that $70 a barrel is way above what the real supply and demand situation would indicate.
http://money.cnn.com/2005/08/19/news/economy/merrill_oil.reut/
http://www.heraldsun.news.com.au/common/story_page/0,5478,16434348%5E1702,00.html
http://www.menafn.com/qn_news_story_s.asp?StoryId=105197#top
I'm betting hard money that oil will be lower next year.