Right Now – Kunstler

I got a letter last week from a reader complaining bitterly that the stock market hasn’t crashed and blaming me for predicting that it would. He didn’t say, but I hope he hadn’t been out there on a shorting spree. In case any of you haven’t noticed, 2007 is not over yet.

The markets have been on an extraordinary spring run. The Dow finished 23 out of the last 26 days on the upside


While this kind of behavior seems ominous, I’m not claiming it necessarily has predictive value. One can say that the financial markets per se are running in an impressive state of structural distortion and imbalance and that systems way out of balance do not stay that way forever. But I risk more opprobrium by stating the obvious.

I think the persistence of this gross imbalance can be accounted for in large part by the current global energy situation. The world is at peak energy, peak oil especially, and the world runs on oil. Peak is peak. The most. There are about 84 million barrels of oil a day flowing around the industrial economies of the world. It is running a lot of activity.

Atlantic Free Press