Dow Inverse To Crude, Legit?

[PropertyEconomics]

It's actually comical, given that countries like China are moving away from nationalization.

They are learning socialism doesnt work .. unfortunately you have to become socialist before you can learn that less. Guess where we are headed.

 

[farmguy]

Moh, I hope you are wrong I have a bottle of Crown Royal riding on a bet oil is below $100 by New Years.

 

[moh malekpour]

Moh, I hope you are wrong I have a bottle of Crown Royal riding on a bet oil is below $100 by New Years.

I hope I am wrong too. I love to see oil price comes down because it costs me much less to buy anything out there. As I said, my milk price was 30 cents less this week and if it goes down another 30 cents, I will buy two gallons of milk per week instead of one. This helps the milk corporation to grow more and the economy to grow more. If the prices keep going up, we are going to get to the point that we cannot buy anything and with the lack of consumers spending, the economy is going to be in the tank.
But the US and developed countries like Europe and Japan created their own monster by globalizing the economy. Their own market did not satisfy them. They wanted to capture the world market and benefit from the low labor of developing countries. They were succeeded for the last 3 decades and you are familiar with the wal mart low prices. We really enjoyed from the low prices coming from developing countries. Now those developing countries are expanding their economy and need to import oil and other commodities that they don't have. So, they are competing with developed counties in importing oil. Developed countries like US, Europe and Japan don't export oil. They import it and if developing countries demand for more oil or commodities, the developed countries have to carry the burden. Can the developed countries cut off the developing countries from world market and let them collapse? I don't think so because we are in a dire need on their low wage and their low export to us. The world economy is interrelated now.

 

[Restrain]

Also, the dollar is up against foreign currencies. And, the EU, Australia, etc are all suffering economically, big-time. So, US stocks are not looking as bad. That's what's pushing stocks up, not just oil.

 

[Terrel L. Shields]

My gut just tells me this is not legitimate

your gut ain't lying...
Hilary Kramer says its a "head fake" before capitulation in the fall. The 3rd Q numbers are going to be as bad or worse than the 2nd.. That magic improvement in the economy everyone was banking on in the second half of the year won't happen.
The banks, the stockbrokers, the hedge funds have left the building as far as housing is concerned. They are onto the "next big thing". In that effort, without a doubt, manipulation is a huge factor, regardless what Bush says. 3 Dutch firms are accused of maniupuation from March of 07 in the oil markets. Look for more to come. 100 energy hedge funds 4 years ago have ballooned to well over 600 all trying to drive prices up and down to arbitrage the differentials in the market. A flat market makes no money for a trader.

BTW, the SEC is trying to rein them in by making them take the oil they buy. There is more oil being traded than exists in the market at any given time. This is particularly true of a British company that actually operates out of Atlanta. This rule is now putting the squeeze on speculators. from a Rueters article

But it highlights the uphill struggle that peers such as JP Morgan, Merrill Lynch or Barclays Capital face in cracking the market for physical oil, which requires a commitment to capital-intensive storage facilities, long tanker voyages and a large, specialized back office.

 

[Marcia Langley]

Well, it is the Dow Jones Industrial Average. There are some financial companies in there, but they are some of the better ones.

The price of oil, for the most part, is not going to stop the damage in the financial sector, which, IMO, is far from over. Simply look at Fannie's most recent reported loss. There are going to be plenty more of those type of reported losses from them and a whole host of other lenders.

I agree. Aside from the Dow, the financial sector did very well Friday. Fannie took the expected big hit but other big players made big gains. I track 19 fininancial stocks and there were mostly good size gains and some really healthy ones. All on a really bad banking news day.

4$ in oil drop just shouldn't affect the financial index that much against the really bad banking news.

 

[c w d]

It's actually comical, given that countries like China are moving away from nationalization.

Are they? The Chinese government still has oppressive control over every aspect of their country. They've certainly given aspects of their society a long rope but the ropes are still there. And how often do we see foreign corporations kowtowing to the Chinese government even in matters to continue oppressing individuals in fear of losing the government's favor. It's smoke and mirrors if you ask me.

 

[PropertyEconomics]

[FONT='Calibri','sans-serif']There was a Chemistry professor in a large
college that had some exchange students in the
class. One day while the class was in the lab
the Prof noticed one young man (exchange
student) who kept rubbing his back, and
stretching as if his back hurt.

The professor asked the young man what was
the matter. The student told him he had a bullet
lodged in his back. He had been shot while
fighting communists in his native country
who were trying to overthrow his country's
government and install a new communist government.

In the midst of his story he looked at the
professor and asked a strange question. He asked,
'Do you know how to catch wild pigs?'

The professor thought it was a joke and asked
for the punch line. The young man said this was
no joke. 'You catch wild pigs by finding a suitable
place in the woods and putting corn on the ground.
The pigs find it and begin to come everyday to eat the
free corn. When they are used to coming every day,
you put a fence down one side of the place where they
are used to coming. When they get used to the fence,
they begin to eat the corn again and you put up another
side of the fence. They get used to that and start
to eat again. You continue until you have all four sides
of the fence up with a gate in the last side. The pigs,
who are used to the free corn, start to come through the
gate to eat, you slam the gate on them and catch the whole
herd.

Suddenly the wild pigs have lost their freedom. They
run around and around inside the fence, but they are
caught. Soon they go back to eating the free corn. They
are so used to it that they have forgotten how to forage
in the woods for themselves, so they accept their captivity.

The young man then told the professor that is exactly what
he sees happening to America. The government keeps pushing
us toward socialism and keeps spreading the free corn
out in the form of programs such as supplemental income, tax
credit for unearned income, tobacco subsidies, dairy
subsidies, payments not to plant crops (CRP), welfare, medicine,
drugs, etc. while we continually lose our freedoms - just a
little at a time.

One should always remember: There is no such thing as a free Lunch!
A politician will never provide a service for you cheaper than you
can do yourself. If you see all of this wonderful government 'help'
is a problem confronting the future of democracy in America, you
might want to send this on to your friends. If you think the free
ride is essential to your way of life then you will probably
delete this email, but God help you when the gate slams
shut!
[/FONT]

[FONT='Calibri','sans-serif']Send to me by a friend that understands!! PE
[/FONT]