The indices are going nuts, but one thing is definitively moving lower.
No more free money means rough times ahead for oil bulls. Crude is already off 4% as I type this, plunging deep into the $70-80 range.
I don’t know if we’re heading into another recession or not. But I do know this: cheaper oil is something to celebrate when you’re the largest economy on Earth and everyone who holds sizable oil reserves wants you dead.
Get your party hats on. Can I get a “Crude to $60!”?
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Well, Gov. Rick doesn’t feel that way, but I sure as hell do (I’m not in the oil biz, obviously). But what I don’t get is this spike up in gold…I didn’t hear anything in the Fed statement that works for that. I guess the hedge funds are just conditioned to buy gold no matter what.
Gold always appreciates, didn’t you know?
warren mosler explained this recently.
in the US we are exceptionally strict with our definition of deficits, govt spending, etc. Other countries allow their central banks to simply buy gold, not on the budget. The whole time that everybody was panicking about us exporting inflation
1. china is the commodity buyer of margin and speculators were the second
2. we are actually more restrained than everybody else
Gold is up because of the fear factor and because the dollar is getting QE 3’d as we speak.
Earl will be back, but it’s currently pricing in a nasty little recess for us all.
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Were we listening to the same speech today? Lol.
Cain,
Great oil short, you nailed it. I doubted you the entire way tbh but you had the conviction and deserve the reward.
Thank you.