Anyone think the US Fed will break the oil bubble in the June meeting?

Discussion in 'Economics' started by CStar, May 23, 2008.

  1. CStar


    As I speculated in my previous post, I think oil is heading for a bubble burst soon. Now I'm wondering that if the high oil prices can avoid breaking down in the next 30-days, might the US Fed step in and adjust rates up 25 to 50 basis points and break oil? I think that would be a good move and might not even rock the market that much, as I feel the market has finally turned negative on oil price inflation. I mean I have seen oil price appreciation as part of global economy upturn in the past and that type of growth usually goes hand in hand with stock appreciation. This is a different animal; looks like a bear to me.

    Hey Mr. Ben Bernanke
    raise Fed rates for us
    I cannot buy gas
    and soon I'll have to take the bus...

    Hey Mr. Ben Bernanke
    raise Fed rates for us
    In the jingle jangle morning
    I'll come following you

  2. 1in10


    And what if it doesn't?

    Pundits have suggested such a move, but there is not a guarantee that it would have the desired moves in oil or any other commodity.

    Joe Six Pack will still be suffering as the gasoline manufacturers will not be so inclined to lower fuel prices anytime soon. Not only does he have to contend with higher costs of fuel, food, etc, but interest rates as well.

    Perhaps the US should rethink not only economic policies that got us to this point, but the underlying economic philosophy as well.
  3. No. Fed is in the business of CREATING bubbles, not breaking them.
  4. It has been planed for years; why do you thinks new hybrids cars come out and Al-Gore's ever-quests on global-warming; It is not coincidence. Think about it.

    How do you block Chinese cars come to States?
  5. Unfortunately, ALL that is occurring now is part of a great and greedy plan... and it's going to get worse... A LOT WORSE!

    If the Founding Fathers were alive today, they'd be puking their guts at what politicos have done to America and how its people have been hosed.

    Did you happen to see Pete Peterson (founder of Blackrock Group) on CN-BS today? They discussed for an hour about how if we continue along the same path as now, we'll "officially be seen as a 3rd-World economic country" within 10 years. :mad:
  6. Daal


    yeah they will print notes made of gasoline, please.
  7. CStar


    You've got that right Gnome. I sold my house towards the top and now I'm just waiting for the bottom to buy again. Thanks Mr. Greenspan!

    I knew there would be a bubble coming ut of the Fed cuts but I didn't think it would happen so fast. Now Bernakne has a chance to corret that mistake but will he take it? Unless he or Paulson do something to firm up the dollar soon, I think the US will take a a very bad 'pound'ing.

  8. Can you call the market a bear?
    not when it closes at/near all-time highs..
    Picking tops will leave you picking up tips

  9. CStar


    Dow 9,000 to Dow 13000 in 10 years... Yeah, that's bull alright. Adjust it out for inflation and it's a very poor market showing. A 5% 10-year CD over that same time period would beat the Dow. And you could get 6% and 7% ones back then, I know, I had a few.

    It's been a great traders market, I'll give it that, but nothing like the stock appreciation of earlier decades.

    And what the heck was the US doing piggy-backing itself on global growth anyway? The US should have been leading global markets, not following them. Of course, having a President who knows nothing is of no help. Greater Presidents have been involved in REAL wars and still managed to handle domestic affairs. This clown can't even handle one millionaire terrorist hiding in Pakistan who's entire air force consisted of three hijacked United states Passenger planes. Pathetic!

    Good leadership does make a difference to the economy and I'm afraid the US is in for four more years of lacking that component. McCain is a shoe-in in my opinion because the Dems seem to have great Karma for shooting themselves in the foot. Hopefully having McCain will keep the capital gains tax low but unless the US quite pumping money into Iraq and starts pumping money into infrastructure, well I think that is a bear situation for both markets and the US as a nation.

    I think a lot of people see this, so maybe there will be enough group consciousness to pull together some positive changes. Profits still look good and maybe before they begin to slump, a real turn-around will take place where oil will break and equity investments will start to grow again.

    So long story longer... I don't see a real bull market again until oil breaks. What we had, I feel, was a bull run due to the economic stimulus checks, some perception that the Fed would continue to cut rates, and the disbelief that oil would go as high as it has. Easy to state; 20/20 hindsight always is.

  10. Hey, I got an idea for all you Socalist on ET. Lets Nationalize the OIL INDUSTRY. Hell, all you clowns and "paranoid fools" can vote for her.

    I mean the shadow gov. is behind all this right?

    LOL, and you clowns make money trading?:confused

    Will someone please post a damn OIL thread worth reading.....:mad:
    #10     May 23, 2008