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Posted by Tony on May 30, 2009, 2:30 pm
It looks like the only one buying US stocks now is the US government.
Should the DOW ever get above the 9,000 level it will look like a repeat
of the last crash with the DOW falling below the 5,000 mark in due time.
Igor The Terrible wrote:
> Where are these clowns getting all this optimism? The economy is
> poised to get worse in the meantime people are lining up to buy
> worthless equities which will lose more of their value in the coming
> years. So, tell me, what happens when all this bailout money finally
> runs its course and there is absolutely NO more good news about
> companies claiming all these jumps in profits? Apparently, oil
> traders seem to think the economy is going to come roaring back later
> this year which in effect leads them to believe oil prices are in line
> with the economy.
>
> Sorry. That is not going to happen. By them increasing oil prices,
> it will not only weaken demand for other goods and services but for
> oil as well. No real wage increases for middle and working classes
> for the past 30+ years...no money to buy all the supply-side centric
> goods and services...and the same goes for oil. I see oil dropping to
> the $20 range--if not lower. But I must admit, it will be
> entertaining to watch the next crash. :D
>
> Igor
>
> Oil Is Plentiful, Demand Weak. Why Are Gas Prices Going Up?
>
> Storage tankers across the globe may be brimming with oil that no one
> is buying because of the global economic downturn, but the traditional
> laws of supply and demand don't always apply to oil prices. Drivers
> have faced rising prices at the gas pump in recent months, as
> investors and oil-producing countries hoard supplies in anticipation
> of a global economic recovery later this year.
>
> The 12 member countries of the OPEC cartel voted in Vienna on Thursday
> to maintain output at current levels rather than increase supplies in
> order to bring some relief to consumers, particularly in the gas-
> guzzling West. The OPEC oil ministers, whose countries account for
> about 40% of the world's entire crude-oil supply, also renewed their
> commitment to stick to their agreed quotas, rather than ship extra
> oil, as they began doing last April when several members ignored their
> agreed output limits. OPEC leaders, many of whose economies are
> heavily dependent on oil exports, have struggled to stabilize prices
> at a level that suits their own economic needs amid falling demand and
> rising supplies. Prices had rocketed to a record level of $147 a
> barrel last July before plummeting to $30 just five months later and
> beginning a new climb. (See pictures of South Africa's oil-from-coal
> refinery.)
>
> Oil analysts believe OPEC's decisions on Thursday could help push oil
> prices even higher; oil futures on the New York Mercantile Exchange
> have risen 36% in just two months, to about $63.46 a barrel on
> Thursday. And that appears to be on track to achieve targets set by
> OPEC leaders. Saudi Oil Minister Ali al-Naimi - OPEC's key power
> player - said Wednesday that oil prices ought to rise to between $75
> and $80 a barrel by the end of the year. "Demand is picking up,
> especially in Asia," he told reporters puffing alongside him as he
> jogged through the streets of Vienna. "The price rise is a function of
> optimism that better things are coming in the future."
>
> The economic recovery Naimi so optimistically predicts would certainly
> be vital to oil-producing countries, whose own economies would be
> imperiled by a drawn-out recession. Oil demand in rich countries has
> crashed since the onset of the economic crisis last year, and is now
> at its lowest level since about 1981, according to the Paris-based
> International Energy Agency. U.S. oil inventories - the stored surplus
> - this month reached their highest level since the 1980s. And about
> 2.6 billion barrels are currently stored in commercial tankers around
> the world. "There is some risk we will run out of storage space in the
> next four to six weeks," says Simon Wardell, director of global oil at
> IHS Global Insight, an energy-forecasting company in London. To oil-
> rich countries that possibility evokes grim memories of 1998, when the
> Asian economic crisis sent demand plummeting, driving world oil prices
> down to $10 a barrel. "If we run out of storage it could prompt a
> collapse in the price," says Wardell. Oil producers might then choose
> to dramatically cut output in order to run down the surplus. (See
> pictures from Azerbaijan's oil boom.)
>
> Despite such dangers, investors and oil producers are betting that
> global demand will roar back, apparently hoping that the recession has
> already hit bottom. Over the past two months, investors have plowed
> billions of dollars into oil futures. If the U.S. and other major
> industrial economies rebound, oil supplies could be depleted because
> the recession has prompted producer nations to freeze hundreds of
> projects to open new oil wells or upgrade existing ones. In the oil-
> rich Niger Delta, a major Nigerian government offensive against rebels
> has seriously disrupted production for several weeks. Venezuela's Oil
> Minister Rafael Ramirez said in Vienna that his country could not
> afford to invest in major new oil exploration unless prices rise
> further. "We need a level of at least $70 [a barrel] to recuperate
> investment," he said on Thursday. Muhammad-Ali Zainy, senior energy
> analyst at the Center for Global Energy Studies in London, says oil
> demand could increase quickly once the recession ends, especially as
> China has begun to build up its strategic oil reserves. "We think the
> price is going to go up gradually," says Zainy.
>
> For those feeling the pain at the gas pumps, however, there is one
> piece of good news. Oil is unlikely to hit $147 a barrel again - at
> least not during the coming decades. The U.S. Energy Information
> Administration said on Wednesday that oil prices would likely rise to
> $110 a barrel by 2015 and $130 a barrel by 2030. By that time the
> world oil markets might once again follow the normal rules of
> economics.
--
The Grandmaster of the CyberFROG
Come get your ticket to CyberFROG city
Nay, Art thou decideth playeth ye simpleton games. *Some* of us know
proper manners
Very few. I used to take calls from *rank* noobs,
Hamster isn't a newsreader it's a mistake!
El-Gonzo Jackson FROGS both me and Chuckcar
Master Juba was a black man imitating a white man imitating a black man
Using my technical prowess and computer abilities to answer questions
beyond the realm of understandability
Regards Tony... Making usenet better for everyone everyday
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