THEY SUDDENLY GREW A CONSCIENCE?
July 18th 2008 00:10
The Dow has risen the past two days adding around 480 points on the upside. Guess what the reason is, the falling price of oil! VERY SURPRISING isn’t it? The way the speed by which a snail, that you have been staring at, closes a one meter gap surpirses you. Zzzzzzzz….
But there you are, if you’ve not been watching them, you’ll think that they suddenly realized the effects of what they are doing. Except that those guys, who have been “hoarding oil” (in paper, at least), are intelligent guys. They are smart and quick enough to see and grab an opportunity to continue enriching themselves in a tumbling economy --never mind if their brilliant moves result in the starvation of millions elsewhere in the world.
So, finally, they are selling oil. News everywhere says the price of oil dropped by some US$15.00 down to US$129.00/barrel the past three days.
Why? What happened? Did they suddenly grow a conscience?
I don’t know people, but somehow, I don’t think they even realize they are doing anything wrong. The reason they are selling now according to an Associated Press report is because of fear of the effects of a rising inflation.
Now, isn’t that funny? The world has a skyrocketing inflation because of…. the high price of oil. And the price of oil is high because of…them!!!
Oh, please, let me clarify, lest I’ll be misunderstood. The effects of inflation they are so concerned about have nothing to do with the sufferings a lot of people are now experiencing. Their worry is that the people, who can hardly afford to buy food now because of rising prices of oil, might not be able to buy anything else, and as a result, further pull down the economy!
That’s really smart, isn’t it? It’s like dragging down your own driver out of the car, continuously hit him with a baseball bat until he lay sprawled all bloodied-up in the street. Kick him some more if he is still breathing after you dropped a big rock unto his head – then, expect him to drive you quite happily home and carry you to bed!
These people are fully aware that consumer spending fuels the economy - more than anything else, yet it is the consumers that they are killing with the very dear oil prices.
Now, how stupid is that?
But I suppose they wouldn’t mind, as long as they have those blood tainted money in their squeaky clean yet very dirty hands.
But there you are, if you’ve not been watching them, you’ll think that they suddenly realized the effects of what they are doing. Except that those guys, who have been “hoarding oil” (in paper, at least), are intelligent guys. They are smart and quick enough to see and grab an opportunity to continue enriching themselves in a tumbling economy --never mind if their brilliant moves result in the starvation of millions elsewhere in the world.
So, finally, they are selling oil. News everywhere says the price of oil dropped by some US$15.00 down to US$129.00/barrel the past three days.
Why? What happened? Did they suddenly grow a conscience?
I don’t know people, but somehow, I don’t think they even realize they are doing anything wrong. The reason they are selling now according to an Associated Press report is because of fear of the effects of a rising inflation.
Now, isn’t that funny? The world has a skyrocketing inflation because of…. the high price of oil. And the price of oil is high because of…them!!!
Oh, please, let me clarify, lest I’ll be misunderstood. The effects of inflation they are so concerned about have nothing to do with the sufferings a lot of people are now experiencing. Their worry is that the people, who can hardly afford to buy food now because of rising prices of oil, might not be able to buy anything else, and as a result, further pull down the economy!
That’s really smart, isn’t it? It’s like dragging down your own driver out of the car, continuously hit him with a baseball bat until he lay sprawled all bloodied-up in the street. Kick him some more if he is still breathing after you dropped a big rock unto his head – then, expect him to drive you quite happily home and carry you to bed!
These people are fully aware that consumer spending fuels the economy - more than anything else, yet it is the consumers that they are killing with the very dear oil prices.
Say, what do you think will happen here should the water below dries up?
Now, how stupid is that?
But I suppose they wouldn’t mind, as long as they have those blood tainted money in their squeaky clean yet very dirty hands.
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Comment by Mike Landfair
Market Bugle
These traders are not selling for that reason. Did you notice Oil peaked when politicians started talking about opening up drilling in the offshore areas? The only thing that will bring down prices, Econ 101, is increased supply.
Buying oil is for protection from a USD that has gone down over 50% in the last seven years.
BTW, inflation is not rising prices but the symptom of a FED that has continually depreciated the USD.
Comment by Market Newbie
Stock Market Punk
Thanks for a reminder on 'Econ 101." However, I do have a different view on the matter. To me, the Law on Supply and Demand, only applies when the "buyers" are the "consumers." Not some multi-billion (or trillion) dollar companies who can strategically control the market and create a scenario of (a Demand Pull Factor) short supply.
Sure, the rising consumptions of China and india are big factors that affect the supply of oil. But left alone to the law of supply and demand, the prices of oil would not have gone as high and as fast as they are now.
I agree with you that the buying of oil is a protection against the falling value of U.S. Dollar. I even said that it is an effective one. But that contradicts your supply and demand theory. Oil prices are high because they are being used as hedge against falling U.S. Dollar.
Sorry Mike, but I agree with the textbook definition of Inflation. And the way I see it, the USD has depreciated not because the FED wanted to bring down its value. USD fell because the FED has to bring down rates to save the US economy (and therefore the world's economy) from a Catastrophe that was brought upon us by greed in the U.S. Subprime Market.
But then, that is just how this newbie sees it.
Anyway, thanks for dropping by.
Comment by Mike Landfair
Market Bugle
Niow, that's just silly thinking. A buyer is not limited to just consumers. Buyers are can have every reason in the world to buy including irrational, insane reasons to buy. That goes for sellers, too
Sorry!.