Quote:
Originally Posted by EldoFan
The oil companies rake in record profits year after year.......one would think they could survive at least a short period when the 'bubble bursts'......
Otherwise what you're suggesting is that prices will skyrocket when the **** does hit the fan right??  |
Hi Eidofan...
Yes, I think the oil companies would survive. Evidence shows that the oil companies are not overextended in oil speculation. The Hedge Funds are a different case. They are driving speculation.
Why do you think the Fed bailed out Bear Stearns? They did it to prevent a Great Depression. Personally I think they overreacted but when a major financial institution like that is about to go under, you've got to do something. The problem is that the Fed is now constantly printing money to bail out these banks and hedge funds. They are basically giving them a get out of jail for free card. This is what is causing the dollar to fall as much as it has.
When the bubble does finally pop, oil prices WILL come down fast and furious. The problem is I believe we the consumers are going to feel the pain from the financial fallout of that bubble bursting.