| joegrundman |
05-23-08 07:44 PM |
Quote:
Originally Posted by August
Interesting bit from your link Joe.
Quote:
Whenever you begin to hear market gurus decree that "this time it's different," as we did during the dot-com bubble and the housing bubble, that's a sure sign of danger in the market. Naturally, proponents of the peak oil theory claim that the recent run up in prices is evidence that the end is nigh. Evans responds, "Fears of peak oil are what this market has in common with the 1980s, not what is different." Recall that during the "oil crisis" of the 1970s when oil prices were as high as they are today, U.S. oil consumption declined by 13 percent between 1973 and 1983. The higher prices of the 1970s led eventually to an oil glut and prices fell to about $10 a barrel by 1986.
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So you agree with the article, that it is the nexus of global instability, weak US economy and Wall Street herd instincts that is causing this spike
the article seemed (but correct me if i'm wrong, i found specualtioin hard to follow) to link the effect of wall street speculators to the weak dollar, so the falling dollar had 2 effects on the price.
If so, does this mean the falling dollar IS a big problem? How soon can we expect it to come back? or should oil trading be more currency flexible in future so trading can switch to whichever currency is better on the day? |
