so far Bernanke for better or worse, I think better has broadcast his sentiments and stuck with it. This is so different from Greenspan. So I don't see any QEIII in the picture at all.
Once oil drops then industrial production and commerce goes sky high. Then what I think you will see is Bernanke raising the interest rates thus twarting a second drive of commodities into bubble land.
You picked it square on. Gas at $3.50 stops the US economy cold. Gas at $4 destroys the commodity bubbles. So what we are seeing now is a good commodities whipsaw and if these speculators think they can get on the other side of that trend, they are truly the smartest on the street. Commodities have an uncanny means of destroying speculators in big numbers.
Late night infomercials are in fact selling gold and silver coins. Just like the late night informericals were selling real estate schemes for nothing down properties. Face it... logic says... if Gold or Silver is going to double in value in a year, you don't make a living selling it, you make your money by buying it. But therein is the rub. The gold sellers tell you that gold will go to $5000 but there they are selling it to you for $1500. What a deal we should all get...
The commodities whipsaw is causing so much bloodshed this time around it is incredible. As El Toro pointed out the "wall of water" theory had them all lined up in the gasoline and oil longs. Then it just flat went the other direction and none of them could get out. So the hedge fund carnage is huge. I am certain a dozen of them went flat bust. They are definitely getting redemptions and they are selling stock indiscriminately. It is blood in the streets and we have not see this much hedge selling since March of 2008. I have to buy these market.
Once oil drops then industrial production and commerce goes sky high. Then what I think you will see is Bernanke raising the interest rates thus twarting a second drive of commodities into bubble land.
You picked it square on. Gas at $3.50 stops the US economy cold. Gas at $4 destroys the commodity bubbles. So what we are seeing now is a good commodities whipsaw and if these speculators think they can get on the other side of that trend, they are truly the smartest on the street. Commodities have an uncanny means of destroying speculators in big numbers.
Late night infomercials are in fact selling gold and silver coins. Just like the late night informericals were selling real estate schemes for nothing down properties. Face it... logic says... if Gold or Silver is going to double in value in a year, you don't make a living selling it, you make your money by buying it. But therein is the rub. The gold sellers tell you that gold will go to $5000 but there they are selling it to you for $1500. What a deal we should all get...
The commodities whipsaw is causing so much bloodshed this time around it is incredible. As El Toro pointed out the "wall of water" theory had them all lined up in the gasoline and oil longs. Then it just flat went the other direction and none of them could get out. So the hedge fund carnage is huge. I am certain a dozen of them went flat bust. They are definitely getting redemptions and they are selling stock indiscriminately. It is blood in the streets and we have not see this much hedge selling since March of 2008. I have to buy these market.