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  • Goldman's $200 Oil Call and the Hurricane Premium Theory
    Gas is $3.50 a gallon, pulling money out of people's pockets by the handful. Consumers are already stretched. Econ 101: consumption will decrease, causing prices to decrease. Combine that with slowing economic growth, lower employment, very worried consumers hunkering down for an economic storm -- what to you get? Pop goes the bubble, the oil bubble. This run-up is being driven by greater fools, convinced that it can only go up, up, up. Long-term, yes. Short-term, no. I expect a sharp drop in oil prices in the relatively near (days, weeks, few months) future.
    Mar 13 00:32 am |Rating: 0 0 |Link to Comment |View article

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