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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: CommanderCricket who wrote (102224)	6/6/2008 10:47:27 PM
From: Elroy Jetson	Read Replies (2) of 206145

Why oil stocks had little lift today is easy to explain. If the price of oil rises so quickly that the economy tanks, oil firms will be selling very little of their product. That means lower profits in spite of high prices. The economy is already suffering from the real estate collapse and a war that has gone on and on, long after WW-II was fought and won. Keeping the foot on the accelerator at the central banks has led to a rise in oil and other commodity prices, and the resulting cost inflation will finally overcome the odd reluctance of central banks to accept a recession in over-leveraged economies. The end result may well be much lower prices in a few years time, just like 1983. This is the result of general incompetence. .

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