"Obama was Harvard Law Review editor and a prof of constitutional law at Chicago. You’d better have some pretty bad ass credentials yourself before you call him an empty suit. "
superbad is right. Yes, there are fundamentals that started driving oil prices higher.
But the fact of the matter is, the price of oil is not dictated by what goes on the ground, it is dictated by the futures market. The futures market is practically unregulated and "big money" can print up as many futures contracts as they want regardless of how many barrels of oil are traded on the ground. And usually they also buy oil ETFs which purchase their newly minted futures from them in a feedback loop, driving the price up cyclically.
Whenever you have a bailout by printing money to solve your problems, that money goes to the big banks etc first before it reaches the little guys (us). When it reaches us it causes inflation. So before it reaches us, the big banks, funds etc put their money into an asset class, and the inflow of money creates its own market. We saw this with the dot-com's, with RE, and now with commodities.
Yes, there are fundamentals driving oil up. But the futures market is becoming increasingly disconnected from the facts on the ground. Smart money is exiting oil now, like the subject of your article. Oil may continue to bubble for some time, but you never know when its going to pop. Heebner and Jim Rogers think this is just the beginning of the oil/commodity bubble. Other more conservative investors are getting out to watch from the sidelines.
I suggest, if you are interested in learning more about this, to research the commodity and futures markes, as well as financial derivativest. It is a disaster in the making. Highly unregulated, like the stock market pre-depression era.
LOL @ the notion of Obama being a socialist. I wonder how that flies? Austan Goolsbee is his economic advisor and he is from the Chicago school of economics. If anything Obama is a little TOO much of a free trade fundie for me, but the choice between him and insane McCain is nonetheless an easy one. I can't believe anyone could consider voting for that derelict, fraudulent warmonger.
the splitting arrow myth originated in england and it is possible to do as long as the arrows that were shot were a poor archers arrows who wouldn't have a nock and likely be made from young tree branches
Damn straight.
Not to mention a state representative for years.
superbad is right. Yes, there are fundamentals that started driving oil prices higher.
But the fact of the matter is, the price of oil is not dictated by what goes on the ground, it is dictated by the futures market. The futures market is practically unregulated and "big money" can print up as many futures contracts as they want regardless of how many barrels of oil are traded on the ground. And usually they also buy oil ETFs which purchase their newly minted futures from them in a feedback loop, driving the price up cyclically.
Whenever you have a bailout by printing money to solve your problems, that money goes to the big banks etc first before it reaches the little guys (us). When it reaches us it causes inflation. So before it reaches us, the big banks, funds etc put their money into an asset class, and the inflow of money creates its own market. We saw this with the dot-com's, with RE, and now with commodities.
Yes, there are fundamentals driving oil up. But the futures market is becoming increasingly disconnected from the facts on the ground. Smart money is exiting oil now, like the subject of your article. Oil may continue to bubble for some time, but you never know when its going to pop. Heebner and Jim Rogers think this is just the beginning of the oil/commodity bubble. Other more conservative investors are getting out to watch from the sidelines.
I suggest, if you are interested in learning more about this, to research the commodity and futures markes, as well as financial derivativest. It is a disaster in the making. Highly unregulated, like the stock market pre-depression era.