Wednesday, 12/11, Market WrapUp (A Year of Things)

Financial Sense Online ^ | 12/11/2002 | James J. Puplava

[rohry]

"Back at the casino, today the markets plunged at the opening bell, then made their 10:00 AM traditional, miraculous recovery before diving again, only to be followed by another last hour miracle. This has been a pattern that can be recognized consistently over the last month. The impetus for the rally was new Wall Street projections that Oracle will beat lower estimates."

[rohry]

Market WrapUp is delivered...

[RightWhale]

Being in Fairbanks, I watch the price of natural gas. It has been trending up gradually. Last winter it didn't. But it's nowhere near the run-up of 2 years ago.

[dalereed]

You are kind of in an isolated market where there is more supply than consumption and no where to export it to.

Here in So. Calif. it's a totally different story, most of our gas in imported and the enviros have shut down almost all the oil fields and forced the electric generation to natural gas (really stupid) and look forward to another energy crisis this winter here.

There is more oil and natural gas here than we can consume if the enviros would only allow it to be drilled and used.

[steveegg]

"Back at the casino, today the markets plunged at the opening bell, then made their 10:00 AM traditional, miraculous recovery before diving again, only to be followed by another last hour miracle. This has been a pattern that can be recognized consistently over the last month. The impetus for the rally was new Wall Street projections that Oracle will beat lower estimates."

That says it all.

[RightWhale]

there is more supply than consumption and no where to export it to.

The market for natural gas is tiny in Fairbanks, even if they hook up everyone. We watch the natural gas price because if it gets high enough the Alaska Natural Gas Pipeline will be built and that represents a bonanza of jobs for Fairbanks. Break-even is $2.70 and now it is $4.70 or so, but they won't build until it gets above $9.00 and stays there a while.

[Ken H]

Thought you all might enjoy this nightly gathering of market commentators, economic junkies, and various other misfits.

[arete]

Today the Bush Administration informed Congress that the U.S. will use overwhelming force, including nuclear weapons, if chemical and biological weapons are used against this country or its military forces.

Just where exactly would be drop a nuclear bomb? So much huffing and puffing going on you'd think this was about the three pigs and the big bad wolf.

Richard W.

[dalereed]

"Just where exactly would be drop a nuclear bomb?"

I vote for the center of Baghdad.

[arete]

Thought you all might enjoy this nightly gathering of market commentators, economic junkies, and various other misfits.

We also have some serious thinkers who lurk and post here. If you are interested in getting an opposing and more realistic view of the economy that you won't hear on pump and dump media outlets like CNBC, this is the place to be.

I came across the Lawrence Parks interview again and thought that it was worth a repost. The audio runs about an hour but it is extremely enlightening. Here's the link:

Lawrence Parks Interview

Richard W.

[Cicero]

Considering the coming war with Iraq, the strains with Saudi Arabia, and the general restlessness in the Muslim world, it's remarkable that oil prices aren't a lot higher.

[steveegg]

Er, that we'd use nukes to even the score in the event of a chem/bio attack has been a poorly-hidden secret ever since we stopped producing chemical and biologial weapons. Personally, I'd drop bomb #1 on the cultural center of whoever sent over the chemicals or biologicals (read, Mecca).

[steveegg]

You forgot about the near-chaos in Venezuela. It is quite surprising that I still see gas for around $1.30/gallon up here in high-price central (suburban Milwaukee).

[arete]

near-chaos in Venezuela. It is quite surprising that I still see gas for around $1.30/gallon up here in high-price central... .

Yep, they used to bump it up a nickel for a little refinery fire. Now, a major source is shut down and nothing. Guess it just shows how controlled and manipulated the market really is. They price it where they want it.

Richard W.

[steveegg]

The former is a "final product" shortage that can't be solved by simply getting the gas from someplace else (US refineries are at essentially 100% capacity and have been for some time). Venezuelian oil can, at least theoretically, be replaced at virtually no cost.

Still, it is another commodities game.

[dalereed]

I think we buy a lot of refined product from
Venezuela.

[steveegg]

I don't have specific numbers, so I can't properly comment on what effect that could/should have.

[Tauzero]

Are you threatening me?

[StockAyatollah]

"Back at the casino, today the markets plunged at the opening bell, then made their 10:00 AM traditional, miraculous recovery before diving again, only to be followed by another last hour miracle. This has been a pattern that can be recognized consistently over the last month. The impetus for the rally was new Wall Street projections that Oracle will beat lower estimates."

If it has really been that consistent, I guess Puplava must be a billionaire by now from daytrading. NOT!

And I just paid $1.28 for gas, the cheapest I've seen in months. The spot markets aren't too worried about Iraq or Venezuela. Maybe they should be. As always we'll see...

[dalereed]

You're lucky, gas here is $1.67 and higher and has been for months.