I guess you weren't around during the late 70's kid . . . They called it STAGFLATION. High commodity prices with no growth. Just ask Jimmy Carter. I would suggest you stop opening up your mouth. It makes you look like the resident ET CLOWN that you are.
Its not a bubble for a million reasons, but Ill start with the most obvious one. A bubble, like the recent real estate one is a bubble because no one thought it was. If people though real estate was a a bubble do you think so m any companies and people would have been so leveraged with alll of this real estate? No. They had no idea of the bubble so they keep pumping money in and when it popped it takes everybody by surprise, fortunes are lost etc. Everyone thinks oil is a bubble, which is why short positions outnumber long positions (or its close at least). There is no one pumping money into oil to make it go higher as they did with real estate and the naz. The fact that everyone thinks its a bubble alone should clue you in. By the way oil is rising b/c of supply issus, no it doesnt really matter.
Now, it may be because I am new to the game, but isn't this just simple supply and demand? Won't oil settle at $80-90 because a solid chunk of Americans are cutting back on their demand, since no one will buy gas at $4/gal?
LOL No. Do you think oil rose b/c of demand? Oil has rising 100% in the last year or something like that...has demand increased that much? No. Don't let the politicians fool you either it has nothing to do with speculators. The only other piece to the puzzle is supply. There is not other reason that makes sense. Now why do you think our military is in the middle east? Oil doubles on what looks to be supply issues and no one can figure out just why our military is there...think about it. That's all I ask. Geeze, I'm 21...what do they teach you at college? and people wonder why i didn't go...
More specifically, the concern over long-term oil supply: is there enough oil reserves to sustain the exponentially increasing demand entering the market? (china... india...) dude, you cannot suggest that our military presence in iraq has any correlation with the u.s. dependence on oil. unless you can show me that our troops are manning the oil fields over there, i fail to see it.
You fail to see it? Why are we there? Do you really think we went into Iraq for WMDs that WOOPS weren't there? The US spends almost as much on our military/intelligence/defense as the the entire rest of the world put together. You're telling me it's a coincidence that our military is in the most oil rich region of the planet, for no good reason at the same time that the price of oil doubles b/c of what looks to be supply issues? We can't live with oil at $500 a barrel especially if china is outbidding us for it. If we want it and push comes to shove, we're going to have to take it. I'm not saying this is happening now, you're right, but it's what I think will happen and its what our government is very wisely preparing us for. Of course they made up some BS about WMDs...who in america would support a war on oil when it was $75 a gallon? No one cared. No one cares still. But I promise if the price doubles again we will be very glad our military is strategically placed in the best position on the planet to make sure we have it.
there are only two kinds of theories: those which are wrong; and those which have yet to be proven wrong. remember this my friend.
Commodities, including oil, are about to crash. Quit being so ignorant and obstinate, oil bulls and 'peak oil' tinfoil hats.