Like the illusion of Wall Street, with its vast and powerful investment banks, now shuttered, China too is an illusion perpetuated by the Globalists that gave us the 15,000 mile Caesar salad, poisoned cat food and lead based paint on babies' pacifiers. Like the illusion that money would come from thin air to always push housing prices higher, China has spent a generation pursuing its illusion. Pursuing an unattainable dream to be like the West, while 6000 years of its carefully shepherded top soil blows into the sea.
Posted: Fri Aug 08, 2008 2:40 pm Post subject: Re: The great oil bubble has burst
Graeme wrote:
Notice that near the end of the article, the author also says this:
Quote:
That's not to say it won't go up again when the signals change and all those long-term factors loom large once more.
Yes, I was expecting a drop this year, but unlike the professional pundits I was not expecting the fundamental problems to go away. I bet they will be as surprised the next time. And the time after that. _________________ Volatility. When life isn't exciting enough.
Joined: Nov 07, 2005 Posts: 559 Location: London, UK
Posted: Fri Aug 08, 2008 5:05 pm Post subject: Re: The great oil bubble has burst
What do you expect from this guy? He is a business writer after, sticking with the tried and tested business model that has been around for years.
That one where all business is powered by a cheap, limitless supply of a finite resource.
I mean seriously.....
Quote:
But for the time being, a return to a relatively "normal" oil price in the $60 to $80 range would take the sting out of the current inflationary surge, and that in turn would allow the Bank of England to contemplate cutting interest rates to stave off recession and help the housing market. Keep your fingers crossed, and keep your eye on how oil traders react to titbits of bad news.
Posted: Fri Aug 08, 2008 9:43 pm Post subject: Re: The great oil bubble has burst
DantesPeak wrote:
Also when prices drop, demand destruction reverses and disappears. Dah!
Well it certainly won't continue forever if prices drop! That being said, there's a pretty big lag between short and long run elasticity, and I think the recent drop in demand and price has to do w/ long run elasticity that some were not counting on, or at least were speculating wouldn't happen. _________________
All times are GMT - 6 Hours Goto page Previous1, 2
Page 2 of 2
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
News
Discussions
Resources
Members
Forum FAQ
Search
Usergroups
Profile
Log in to check your private messages
Log in
That being said, there's a pretty big lag between short and long run elasticity, and I think the recent drop in demand and price has to do w/ long run elasticity that some were not counting on, or at least were speculating wouldn't happen.
