I just read this --
http://revolutionradio.org/2008/06/23/happy-birthday-subprime-crisis-oil-price-up-96/ .
It is nicely written and makes sense. The final para says -
"When you take a step back, it’s hard not to see what’s going on. The worse the credit crisis gets, the higher the oil price goes. The more the Fed creates new liquidity to try and contain the damage in the credit markets, the higher the oil price goes.
Can you blame investors for wanting to own commodities? Joe Lieberman wants to ban people from doing the sensible thing. Investors see that central banks have lost control of inflation, or are even making it worse. It is not speculation to find a better store of value for your money. It’s common sense. No wonder certain governments want to ban it."
***
This is reason. The suspicion is what I've in mind. Could the investment banks that turned turtle cause of the subprime losses try and spike oil to cover for their bad investments? That they didn't succeed is an altogether different story.
No comments:
Post a Comment