Can the Stupidest People on Earth get stupider (more stupid?)? Of course they can--especialy when they are momentum traders with not a care in the world about actual economic reality.
Remember when oil was $147 a barrel, even AFTER the economy was on its downward slide, and Wall Street/comodity analysts were still touting it would go to $200.00 a barrel? What did this blog say then? I told you so. I told you that we were in an oll price bubble. I was right. Anyhone who disagreed with me was wrong. And those touting a "new world" of ever increasing oil prices were prart of the Stupidest People on Earth!!!!!! Those people have now gone beyond stupid. Yes. "Stupid" has GONE NUCLEAR (while we still avoid nuclear power for no sane reason).
I repeat my correct prediction (nade in firesight, as usual, and not hindsight) when oil was $140 a barrel and higher. We are AGAIN (stupid people do not learn, especailly when they are corrupt, manipulative liars as much as they are stupid) in an oil price BUBBLE, even though oil is now onlyl $60.00 a barrel. How can there be a "bubble" at $147 and also at $60? Easy, A mere week or two ago oil inventories were at THRITY FIVE YEAR HIGHS. Oil prices went UP (based on the "smart guys" saying that inventories had not risen as much as expected). This drives my brother nuts (he, whose trucking compnay recently went into chapter 7 bankruptcy). My brother thinks Big Oil (created by MERGERS we never should have allowed) is manipulating the price of oil and fuel, regardless of market conditions. My brother tells me os consistent reports that oil producers are having to STORE enormous amounts of excess oil because the world is awash in oil,. While my brother is certainly right about the big oil companises manipulating as much as they can, which we have allowed--because of our encouragement of corporate empires as well as government ones, my brother underestimates the stupidity and greed of the Stupidest People on Earth. Yep. That is the people on Wall Street, AND the epople trading commodities outside of Wall Street. These computer gamers are again being STUPID, or is it that they count on everyone else being STUPID.
Before oil inventories reached 35 year highs, the price of oil fell to $35 a barrel. As the worldwide economy still struggles, and oil demand is down worldwide, the price of oil has RISEN 80%. That is a BUBBLE. It is STUPID. It shows that our financial markets are sich unto death, and being controlled by computer gamers. I saw 10 seconds of CNBC yesterday (all I can stand of those economic fascists, and total idiots). The people on Wall Street are AGAIN "touting" commodities and energy stocks as the "hot" place to be (AFTER an 80% rise in the price of oil; the Stupidest People on Earth does not come close to describing how stupid these people are). The price of oil never fell to a 35 year low--not even close. Yet, a small stabilization in oil inventories has enabled these computer gamers/speculators to engage in the same game again--less than a year after the game was EXPOSED as fiction. Those people who buy into this are even more STUPID than the people on CNBC attempting to sell this rot.
You doubt me ont this? Don't. Oh, Obama and the "global warming" people are doing their best to create a shortage of oil, when there is more than enough oil in the world. Doesn't matter (in the short to intermediate term). The world is still awash in oil. But let us play devil's advocate, and assume that the price of oil goes above $60 a barrel (historically--over the past decade--very HIGH in a time when demand is already very LOW).
Would it be "bullish" for the stupid buyers of oil futures, at $60 or highter, for the price of oil to keep going up at this point? If you think so, then you are one of those perfect people for the Age of Obama. At best, the world economyu is on THIN ICE here. Any "recovery" is likely to be fragile, and derailed by incredible spending, debt, and inevitable central planning mistakes we are now committing to "solve" the bad economy,
What happens if the price of oil continues to go up, or even stays near $60 a barrel. Rigth. The world economy TANKS again. At the very least, oil demand SINKS (as actions already in motion to get away from oil are again encouraged). For oil prices to have risen 80% at this point (from their lows) is the most BEARISH possible sign for the future price of oil. It is a DISASTER for the future price of oil. These people now saying otherwise are truly the Stupidest People on Earth. Yep. It is, in reality, no different from the rise in the stock market in general (many stocks have gone up 100% over the same period oil has been rising--in companies that would be HURT by the price of oil rising and staying high). This is computer gaming--not investing or real "analysis".
I actually heard one "analyst on CNBC (almost broke my televison screen when I threw an object at it) saying that commodities were the main way to particpate in "global growth". WHAT GLOBAL GROWTH? There is none now. And if commodity prices go up NOW, there willl be NO "global growth" in the future.
I assure you I am right on this. This is COMPUTER GAMING--not investing., It is momentum trading based ENTIRELY on spectualtion, without any basis in economic reality (as has been true of the huge run-up in the stock market in general).
The "explanation" for the "run-up" in oil prices early today was a decline (lol) in crude oil invetories. So now we are only NEAR a 35 year high, instead of AT a 35 year high! The "run-up" in the prcie of oil has already gone far beyond what could be justified by a week or tow or three or forur drop in inventroy (even if real).
The new word on Wall Street is "normalizing", which means the computer gamers are HYPING that Obama will turn everything back to 20007 (when Wall Street, and our entire financial system, showed how STUPID they really are). Were these same people talking about "normalizing" when oil was $147 a barrel, or when housing prices were in a BUBBLE? Don't be silly. These are STUPID people, and yet the same people are telling you to listen to them again.
What is the "normal" price of oil? It is certainly not as high as $60 a barrel. That is the POST-KATRINA, extraordinary price of oil. In the last decade, $30 to $40 a barrel is about the "normal" price of oil, with pretty recent drops all of the way below $20 a barrel. Even the reasoning of these Wall Street people is STUPID--perfect fro the Age of Obama, where it is perfectly all right to forget what you said yesterday, and what happened yesterday.
Nope. I am right on this. Oil prices ARE in a BUBBLE (right now). there is no economic justification for their present level.
Might not an Israeli attack on Iran (at least 50-50) cause an explosion in oil prices? Well, you notice that is TOTAL SPECULATION, having nothing to do with the fact that there is more than enough oil in the world. More to the point, however, any such event might cause a MOMENTARY spike in the price of oil. But, as stated above, that would only be a prelude to the COLLPSE in the world economy, and the price of oil There is just no way the price of oil (or energy stocks) goes up from here--at least not substantially and not for very long.
It is again a game of musical chairs, where the cynical computer gamers on Wall Street (and in the commodity markets) fully expect to grab their chair in time--leaving the rest of us out in the cold.
Subscribe to:
Post Comments (Atom)
1 comment:
Completely agree with your comments. I have been telling everyone around me who will listen long enough that we got royally screwed last year by the Wall BS St traders who kept pushing oil/gas prices higher by nothing more than trading paper contracts between themselves. The 2 firms who profited the most from this game were Goldman Sachs and Morgan Stanley. It would appear that they are at again but this time in the face of record inventories. Those idiots in Washington who are suppose to be representing us better wake up and do something soon before we are staring 140.00/barrel of oil again this summer.
Post a Comment