Now tell me the Fed is not causing the current commodity crisis.

[Arraya]

How does more than a doubling of crude prices in a 9 month period demonstrate fundamentals?

How does it not. It provides the same amount of BTUs as a athletic human working a 40 work week for one year and is becoming scarce.

It’s been priced too low for too long. The market never had a proper mechanism to price it in the first place. And industrial world is waking up to how valuable it is.

Chindia’s consumption hasn’t gone up that much and if it has then we’ll be seeing $400 a barrel in about a year at that rate.

Oil is very in-elastic and at this point in technologic history irreplaceable. There is no spare capacity like there used to be minor disruptions cause huge spikes. It’s just the way oil works.

Actually right now we have diesel shortages brewing which we are seeing pop up in

If memory serves chinas consumption has been growing between 5 and 10% since 2000. I’m not sure where india is.

Like I said DECLINING NET EXPORTS. We are 4.1% down from 06. Any increase in demand will raise prices quite substantially.

Just wait until world production starts to decline. They will have to impose price controls and rationing.

[capeman]

We’ll see how your argument holds up when the Fed finally does what it’s supposed to do and begins an FFR raising campaign. You go long oil and I’ll go short and we’ll see who pulls in the dough. 😉

[capeman]

We’ll see how your argument holds up when the Fed finally does what it’s supposed to do and begins an FFR raising campaign. You go long oil and I’ll go short and we’ll see who pulls in the dough. 😉

[capeman]

We’ll see how your argument holds up when the Fed finally does what it’s supposed to do and begins an FFR raising campaign. You go long oil and I’ll go short and we’ll see who pulls in the dough. 😉

[capeman]

We’ll see how your argument holds up when the Fed finally does what it’s supposed to do and begins an FFR raising campaign. You go long oil and I’ll go short and we’ll see who pulls in the dough. 😉

[capeman]

We’ll see how your argument holds up when the Fed finally does what it’s supposed to do and begins an FFR raising campaign. You go long oil and I’ll go short and we’ll see who pulls in the dough. 😉

[CA renter]

Excellent post, Capeman!

There is always a “fundamental” argument whenever we see bubbles; otherwise, it would be too difficult to convince everyone to pile in.

Obviously, we should be looking at alternative energy sources and reducing our consumption…but that’s just common sense.

I vote for a commodities bubble as it relates to the dollar decline. It may well continue if nothing is done to save the dollar, but what would happen if we get a Volcker in there (we can hope!)?

[CA renter]

Excellent post, Capeman!

There is always a “fundamental” argument whenever we see bubbles; otherwise, it would be too difficult to convince everyone to pile in.

Obviously, we should be looking at alternative energy sources and reducing our consumption…but that’s just common sense.

I vote for a commodities bubble as it relates to the dollar decline. It may well continue if nothing is done to save the dollar, but what would happen if we get a Volcker in there (we can hope!)?

[CA renter]

Excellent post, Capeman!

There is always a “fundamental” argument whenever we see bubbles; otherwise, it would be too difficult to convince everyone to pile in.

Obviously, we should be looking at alternative energy sources and reducing our consumption…but that’s just common sense.

I vote for a commodities bubble as it relates to the dollar decline. It may well continue if nothing is done to save the dollar, but what would happen if we get a Volcker in there (we can hope!)?

[CA renter]

Excellent post, Capeman!

There is always a “fundamental” argument whenever we see bubbles; otherwise, it would be too difficult to convince everyone to pile in.

Obviously, we should be looking at alternative energy sources and reducing our consumption…but that’s just common sense.

I vote for a commodities bubble as it relates to the dollar decline. It may well continue if nothing is done to save the dollar, but what would happen if we get a Volcker in there (we can hope!)?

[CA renter]

Excellent post, Capeman!

There is always a “fundamental” argument whenever we see bubbles; otherwise, it would be too difficult to convince everyone to pile in.

Obviously, we should be looking at alternative energy sources and reducing our consumption…but that’s just common sense.

I vote for a commodities bubble as it relates to the dollar decline. It may well continue if nothing is done to save the dollar, but what would happen if we get a Volcker in there (we can hope!)?

[Eugene]

All I see is two uncorrelated graphs that happen to be upward trending at the same time.

Try this instead:

http://tinyurl.com/6nccmd

[Eugene]

All I see is two uncorrelated graphs that happen to be upward trending at the same time.

Try this instead:

http://tinyurl.com/6nccmd

[Eugene]

All I see is two uncorrelated graphs that happen to be upward trending at the same time.

Try this instead:

http://tinyurl.com/6nccmd

[Eugene]

All I see is two uncorrelated graphs that happen to be upward trending at the same time.

Try this instead:

http://tinyurl.com/6nccmd

[Author]

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