Seems like oil should overshoot on the downside because it sure looked like overshooting in the 140s, it's the momo thing both ways ... after that though, it's all about how much demand destruction the whole universe of factors is going to create, and in the 40s the price alone is not going to create much ... in the last few days i've read really detailed well-thought pieces that have it both ways - either deep into the 30s or back to the 70s before too long ... actually, there's no reason it can't do both, or add another zag to the zigs, as in high 30s then 70s then low 30s, wouldn't that rock some worlds ... while every day, no matter what else is true that day, there is depletion
"Dec. 2 (Bloomberg) -- U.S. stock swings will be more than triple the average for the next seven months as investors contend with a global recession and the worst returns since the 1930s, volatility futures show....'
bloomberg.com
Stimulus - it's not clear that we need any yet, and our banks don't need bailouts [or do they - have you ever tried to really understand what makes or loses a bank money ... the bloody fees, that's right, they can just up the bloody fees again, lol] ... any stimulus that doesn't go into infrastructure with enduring benefits will simply get burnt up and we'll be left with the debt ... one traditional way to stimulate out of depression though, is to go to war, perhaps we should consider conquering Greenland or something .... but NOT Iceland, until they get their finances in order anyway |
