![Freakonomics[Revised and Expanded]](/images/21xRHBWYYML.jpg "Freakonomics[Revised and Expanded]")
Oil Nasdaq Bubble Parallel
Saturday, June 21st, 2008Anyone see a parallel here?
Energy
Oil price signalling economy distress ahead?
Wednesday, May 21st, 2008So folks,
When will the big oil bubble (that has been in the works for some time) be burst? maybe when it touches $150 or $200?
1) But all we know is that a really big bubble is forming in the Energy prices(thanks to falling dollar, cringing oil supply and skyrocketing demand).
http://biz.yahoo.com/ap/080521/wall_street.html
http://biz.yahoo.com/ap/080521/wall_street.html
2) This forces airlines to pass down the fuel surcharge to consumers (American airlines to charge $15 for first checked bag, cut flights and work force to offset fuel costs)
3) Democrat Senators are at again on the case of price-fixing and lack of Corporate conscience
http://biz.yahoo.com/ap/080521/oil_congress.html
http://biz.yahoo.com/ap/080521/oil_congress.html
4) Finally, this will have a negative impact on our future economic growth
http://biz.yahoo.com/ap/080521/fed_economy.html
http://biz.yahoo.com/ap/080521/fed_economy.html
Are I predicted earlier in the year, are we really going into a stagflationary mode here?
(Courtsey: BigPicture)
Which reminds me, has anyone been looking at Rice prices lately? Don’t even go there! I am switching to wheat in my daily food consumption.
Goldman’s analyst who predicted $100 oil ups his target
Tuesday, May 6th, 2008May 6 (Bloomberg) — Crude oil may rise to between $150 and $200 a barrel within two years as growth in supply fails to keep pace with increased demand from developing nations, Goldman Sachs Group Inc. analysts led by Arjun N. Murti said in a report.
New York-based Murti first wrote of a “super spike'’ in March 2005, when he said oil prices could range between $50 and $105 a barrel through 2009. The price of crude traded in New York averaged $56.71 in 2005, $66.23 in 2006 and $72.36 in 2007. Oil rose to an intraday record of $122.49 today on speculation demand will rise during the peak U.S. summer driving season.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ayxRKcAZi630&
USD continues to fall driving Oil prices up
Thursday, April 24th, 2008It has been a record breaking day in the financial markets with the US dollar falling to a new all-time low and oil prices hitting a record high above $119 a barrel. When it comes to oil and the US dollar, it is difficult to determine which is the primary driver because the dollar’s weakness pushes oil prices higher while oil prices hurts the outlook for the US economy. Although it can be argued that higher crude prices are inflationary, it is not that simple because the Federal Reserve cannot raise interest rates to combat inflation. With the market already pricing in only a quarter point rate cut, to forgo a rate cut completely would send a message to the markets that the Federal Reserve is not quite ready for. At this time, the Fed’s bigger problem is the pressure that $5 gas prices may have on consumer spending and corporate profitability.
The pocketbooks of US consumers are getting pinched by the day as prices rise globally. This morning, there have been reports that Mattel is raising toy prices and even the MTA (Metropolitan Transportation Authority) here in NY is planning to raise the price of alcohol, soda and snacks for the first the first time in 4 years; the price hike of 25 percent is by no means shallow. Housing market numbers were released this morning and they were not as bad as analysts had feared. The absolute number of existing homes sold was slightly more than expected even though the drop on a percentage basis was greater. House prices actually ticked higher which is a relief for the housing market even though that relief will probably be temporary. California just reported the highest level of mortgage defaults in 15 years, reflecting the severity of the problems in the US real estate market. Expect the US economy to get worse before it gets better.
Check out more on Daily FX
Oil price spikes to a new high - $108
Monday, March 10th, 2008With $100-a-barrel here for now, Goldman Sachs says $200 a barrel could be a reality in the not-too-distant future in the case of a “major disruption.”
Goldman analysts Arjun Murti, Kevin Koh and Michele della Vigna said prices have advanced more quickly than Goldman had forecast back in 2005, when it predicted a range of $50 to $105 a barrel as part of its “super-spike” oil theory. 
Gasoline Pump Price Economics
Sunday, January 13th, 2008