OIL IS DOWN $100 PER BARREL IN A FEW MONTHS...
OK GREAT..! BUT HOW SICK IS A SYSTEM THAT ALLOWS SOMETHING THAT IMPORTANT TO BE ALL OVER THE BOARD... NO WONDER DETROIT IS WHIPSAWED BY THE ECONOMY...
THERE IS SOMETHING SERIOUSLY WRONG WITH THE MARKET THAT ALLOWS OIL TO GYRATE BY THAT AMOUNT...
AND NO...IT'S NOT "DEMAND DESTRUCTION"...OR PERHAPS ONLY A SMALL AMOUNT... MOST PEOPLE ARE STILL DRIVING CLOSE TO NORMAL AMOUNTS...
YES SOME DISCRETIONARY TRIPS ARE NOT MADE...BUT NOT ENOUGH TO SINK OIL THAT MUCH...AND THE NEW ECONOMIES ARE STILL GROWING...JUST NOT AS FAST...
CLEARLY THE SPECULATION BY HEDGE FUNDS WAS MASSIVE...AND THE UNWINDING IS A DISASTER!
INDEED, 90% OF THE HORRORS WE HAVE SEEN IN THE MARKETS IS CAUSED BY HEDGE FUNDS MASSIVELY LIQUIDATING POSITIONS... AND REMEMBER THESE HEDGE FUNDS REPRESENTED THE LARGEST HOLDERS OF STOCK...THE BIG PENSION FUNDS...AND OTHERS OF EXTREME WEALTH!!
NOW WHAT HAPPENS WHEN THE MEGA-WEALTHY ARE DONE LIQUIDATING...?
WELL THE NOTION IS THAT THEY RUSH BACK INTO STOCKS AND BUY THE STUFF THEY JUST SOLD...!
WELL...I DONT SEE IT THAT WAY...
VERY LIKELY THE MONEY WILL STAY IN CASH OR BONDS...OR PUSH COMMODITIES HIGHER...LIKE GOLD AND OIL...
THE MASSIVE CASH HOARD THAT IS BUILDING IN THE GLOBAL AND US ECONOMIES COULD BE OUR NEXT BIG PROBLEM...!!
AND REMEMBER THE MORE CASH THAT IS OUT THERE...THE LESS IT'S WORTH...!
GOLD LOOMS LARGE...WHEN THE CASH HOARDING IS DONE...ESPECIALLY WITH THE MASSIVE AMOUNT OF CASH THAT WAS "PRINTED" BY WASHINGTON TO AVOID A "DEPRESSION."
