Good read. Make sure and click on the link for $200 a barrel super-spike. I'm praying that they are right about the indicators pointing to the oil boom ending.
It's been my opinion that the increase in oil prices is fueled by the same speculators that first gave us the dot.com bubble, then the housing bubble, now the oil bubble-it has nothing to do with real world supply and demand- and next, already starting is the grain bubble.
They are like the Looney Toones Tazmanian Devil that used to torment Buggs Bunny. Only there is nothing funny about the havoc they are creating in our financial lives.
I read an article recently that said that the Goldman Sachs analyst who is predicting $200/bbl oil, also predicted $100/bbl oil back in 2005. Obviously, he was off by a couple of years. Yes, I firmly believe that this is a "bubble" situation with the oil market right now. There are alot of people talking up the price who probably have alot to gain by doing so.
2008 Nissan Titan SE, Crew Cab, 4x4
Long Bed, Big Tow
I lean more towards believing that it's a bubble. The problem is that it could go a ways higher and for a while longer before it pops.
Goldman Sacks is the major mover behind running it up. Unfortunately, they'll be out before it pops.
Then again, there are those that say Saudi Arabia is lying about their reserves and their ability to pump more oil. If that is true, this isn't a bubble, but a permanent situation that will only get worse.
Offline
