[strider3700]

Because traditional economics seems to have trouble relating oil to the market. Here they believe that recession is coming so oil usage will decrease. This was all caused by the housing market implosion

[dukey]

well a hard recession probably would knock oil consumption !

this is why the market is a dangerous game.
Futures are not a certainty even if you understand and accept peak oil is near and it pans out that way.

[drew]

If a bad recession/depression is on the way plan for it and hope for the best. IMHO if not now, soon. All the ducks are in a row for a bad one.

Hopefully if you still have a job, house, and some savings you can get in at the bottom when the cycle begins anew.

What do you think the rich do when bad times hit?

I think Mr Bill expressed fears of a significant correction in share value in the range of -70% a few weeks back.

When I read that I was shocked. After all he is one of the board's biggest champions of capital isn't he?

Drew

[threadbear]

$this->bbcode_second_pass_quote('drew', 'I')f a bad recession/depression is on the way plan for it and hope for the best. IMHO if not now, soon. All the ducks are in a row for a bad one.

Hopefully if you still have a job, house, and some savings you can get in at the bottom when the cycle begins anew.

What do you think the rich do when bad times hit?

I think Mr Bill expressed fears of a significant correction in share value in the range of -70% a few weeks back.

When I read that I was shocked. After all he is one of the board's biggest champions of capital isn't he?

Drew

[DantesPeak]

Essentially the sharp drop in the market about two weeks back was a signal that a financial deflationary wave of sorts had begun. Despite excessive amounts of liquidity produced in the world financial system, mostly by China, Japan, and the US, debt destruction and credit defaults were growing. More specifically, the apparent defaults of sub-prime borrowers had spread to the sub-prime lenders, and from there it affected their primary lenders - major Wall Street firms and major banks.

Wall Street is quick to react to problems and, in addition to cutting off sub-prime companies and letting them fail, will sell their most liquid and actively traded investments first. Because of debt worries, money flows into US bonds – for now – and out of commodities and actively traded stocks.

Considering the fact that the stocks of all 88 top financial firms dropped today, it is an indication that the stock market correction is by no means over, and that there are more credit defaults ahead.

Unfortunately the price of oil will become very erratic in this situation, possibly even defying sense and going lower, before foreign creditors will sink the US dollar – and drive the price of oil back up in terms of the US dollar.

[drew]

Ha I might as well throw gas on the fire!

The Nikkei 225 is already down 470 points and it's been open an hour or so.

The asx/200 is down 112 points

The Shanghai sse 180 is down over 200 points

The hang seng was down 128 points yesterday and is going to be down alot more today I'll bet. ( I don't have current data yet-maybe in 10 minutes)

Drew

[drew]

Hold onto your drawers folks!!

The Hang Seng has opened 566 points down!

Drew

[TreebeardsUncle]

Hi.
Well, put in an order to Fidelity today to move out of Goldman Sach's MidCap Fund and into the gold fund after the market has gone down about 5% from its yearly peak on February 29 or so.

G

[pea-jay]

Conventional economists are still correct; declining economic activity will reduce oil demand. Where they dont get is in the cause-effect relationship and the geological constraint that peak oil poses to future oil production once the economy rights itself.

Right now many signs point to an economic crunch taking pressure off of oil so that something else takes the fall for the coming misery. Housing for example. A not so gradual realization that oil has peaked and oh crap, we dont have anything lined up to replace it would be far worse scenario to work with.

[I_Like_Plants]

Yep of course if the stocks tank, that could mean recession, and thus oil would go down a little.

Recession, deflation, debt destruction, default. etc.

Meanwhile I went to the post office and again it was amazingly un-busy.......

[miraculix]

$this->bbcode_second_pass_quote('', '
')Meanwhile I went to the post office and again it was amazingly un-busy.......

[I_Like_Plants]

Well, the way I figure it, the more economic activity, the more activity at the post office - people sending gifts, going to/coming from holidays and picking up mail, immigrants sending packages home, ebay sellers, all kinds of activity.

Maybe it's just the time of year, I don't remember being so "lucky" so many times to find such short lines to wait in.

[oilluber]

$this->bbcode_second_pass_quote('dukey', 'w')ell a hard recession probably would knock oil consumption !

this is why the market is a dangerous game.
Futures are not a certainty even if you understand and accept peak oil is near and it pans out that way.

[dukey]

well
after the dot com madness i think it hit oil demand somewhat

But it depends how hard a recession you are thinking of. Americans have NEVER been in so much debt. If there is a hard recession, it could be 1930's style.

[KevO]

$this->bbcode_second_pass_quote('threadbear', '')$this->bbcode_second_pass_quote('drew', '
')
NO SH**? Mr. Bill has shares going down 70%? It's not like the sage is a bug eyed fanatic, either. Interesting.

[KevO]

$this->bbcode_second_pass_quote('drew', 'H')a I might as well throw gas on the fire!

The Nikkei 225 is already down 470 points and it's been open an hour or so.

The asx/200 is down 112 points

The Shanghai sse 180 is down over 200 points

The hang seng was down 128 points yesterday and is going to be down alot more today I'll bet. ( I don't have current data yet-maybe in 10 minutes)

Drew

[Revi]

My Evergreen Solar stock actually went up a bit. ESLR seems to go down when the rest of the market is up, and only dips a bit when it goes doen. I have no idea what's going on, but it seems like the bubble on the real estate bubble has popped. Subprime lending took the rest of the market with it. Maybe as Kunstler says we are a nation of real estate salesmen and speculators.

[Newsseeker]

Oil's back above $59 dollars a barrel. I predict oil is headed up right about now, these minor corrections will not slow it down. Expect $3.00/gallon gas here pretty soon and perhaps even $3.50 over the peak summer months.

[KevO]

$this->bbcode_second_pass_quote('Newsseeker', 'O')il's back above $59 dollars a barrel. I predict oil is headed up right about now, these minor corrections will not slow it down. Expect $3.00/gallon gas here pretty soon and perhaps even $3.50 over the peak summer months.