Oil Performance (Musical Tribute)
1a. Oil prices rose much faster (in percentage terms) than stock prices and housing prices on the way up.
1b. Oil prices crashed much harder (in percentage terms) than stock prices and housing prices on the way down.
So where are we now?
2a. Oil prices are now rising much faster (in percentage terms) than stock prices and housing prices on the way up, again. In fact, oil is beating the living daylights out of housing prices right now (since housing prices are still going down).
I have this strange feeling of déjà vu. Will there be a 2b? How much longer before we get the rest of the cycle? I therefore offer the stagflationary theme song as sung through the lungs of oil. Oil is such a great performer!
2 comments:
Stag,
I ran across this neat little interactive sham organizer:
http://www.usbudgetwatch.org/stimulus?sort=desc&order=%3Ccenter%3E%3Cu%3EAmount%3Cbr%3ESpent%3Cbr%3E%28in+bil%29%3C%2Fcenter%3E%3C%2Fu%3E
It's a helpful tool for keeping track of the size and scope of the stupidity and looting. Lots of imbedded links too. If for some reason we can't get back to the illusion of prosperity, it won't be for lack of trying.
As for the recent run up in the price of oil there could be a silver lining although it has only a small chance of materializing.
My hope is that high oil prices will focus the attention of the public on the current and long term costs of the bailouts. If nothing else, we should openly debate the actions of the fed and treasury. If people had a better understanding of the distribution of the bailout's benefits and costs, it would be a different ball game.
mab,
"If for some reason we can't get back to the illusion of prosperity, it won't be for lack of trying."
I hear that!
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