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World Events
Topic: Do high gas prices still bother you?

#AuthorMessage
231
EighthDwarf
Fri 6/20/2008 1:51p
Oil, like every investment, will always be in an "up" trend in the long term. If you price out the normal growth rate of the price of oil (about 8% a year) the price per barrel should be around $70 right now.

With the strengthening of the dollar in the near future and the pressure against speculation, watch for oil to fall dramatically at some point. The question in my mind now is what will be the repurcussions?? I know there are financial firms betting on the continued bull market in oil futures. When that collapses we will all feel it in one way or another.
232
queenbee
Sat 6/21/2008 9:21a
Would these be the same financial firms that are able to borrow money from the Fed's newly created lending window? Aren't they swapping their lousy CDO's for Treasury notes? Makes me wonder if the taxpayers are provding the liquidity to manipulate the markets.
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Posted: 11/21/08

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