Wednesday, September 06, 2006

It just doesn’t make any sense …..

September 6,2006

Hello,
In a thought provoking critique of contemporary American society I ask if Iran is such a threat why are oil prices going down. It just doesn’t make any sense …..

If I would have told you late last year that the housing market would have cooled off some say crashed, inflation was in check, consumer spending is steady, corporate earnings grew at 17% and the economy is holding its own. You would have said I am crazy. It just doesn’t make any sense…

Meanwhile the back to the 1970's media is reporting "peak oil forecasters have been winning coverts on wall street" Hummm I have so heard that before, so the fact the gasoline prices have dropped in price almost 20% in the last couple of weeks during heightened international tensions, there has been a cut off at the US's largest oil field and energy shares have declined would not be suggesting the opposite? Add the fact that oil price have increased from $24 a barrel to over $70 a barrel over the last couple of years yet gasoline has only gone from $2 to 3$ a gallon .Add again the perceived deep well oil find in the gulf of Mexico perhaps adding 50% to the total amount of US oil reserves. It just doesn’t make any sense .

Recent commentaries on the market are suggesting that the markets are not taking the threat to terrorism seriously .Really, the US GDP has increase by almost 50% in the last 6 years, productivity has increased at the fastest pace since the industrial revolution and companies earnings cleaner and larger than ever before and there is more cash on hand that at any time in my life time ? Yet the stock market has been at a virtual standstill for the last 6 years and still down significantly from the 2000 highs. I think the market has factored in the end of the world. It just doesn’t make any sense…


James
www.jamesfoytlin.com

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