oil up down, market down up
I've been noticing a trend over the last few weeks. The market starts to chug, then something throttles it back,
Dow Closes Down 46 on Surging Oil Prices
Crude futures rose sharply after the government reported a 1.6 million barrel drop in its oil inventories. The news created concerns about supply as the summer driving season begins.
Funny, isn't it.
posted by JMS @ 7:58 PM
3 comments
3 Comments:
The markets have more or less been trading in a box since January and oil prices have taken their toll. But since economic signals have been mixed (one month's employment record lousy, the next one great) and oil price up, then down nobody in the financial world seems to make heads or tails of the matter.
Since most market participants and the economists and analysts that watch them are not energy-aware, the do not really grasp the idea that energy is NOT just another commodity that can be substituted if it becomes scarce.
So trading goes sideways over the long haul (the great boom ended in 2000), nobody is the wiser why and everyone looks for new investment opportunities.
Like real estate.
Funny thing about real estate, since I don't own any myself, and have no plans to partake for the forseeable future:
When I bring up the depletion and or bubble topic with friends who are owners, they kinda cringe, and then laconically suggest that while I may be right, we're safe for the next five years or so.
Five years always being five years out.
All this evidence that our oil dependency allows high oil prices to drain the life out of our economy in a way that e.g. high caviar prices cannot, and the reaction of our Congress is....
to further subsidize and promote oil dependency!
If you needed proof that our government is run by people who are both economically and technologically illiterate, you couldn't ask for more.
Post a Comment
<< Home