Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Mike M who wrote (59339)	9/24/2000 4:48:59 PM
From: Casaubon	Read Replies (1) \| Respond to of 99985

My point was that, while capitalism may be a willing participant in the pricing of oil, I am doubtful that political intrigue has much of a part to play. I don't know but, it's easy for me to believe the release of the oil reserves was politically motivated just as big oil might have interest in exacerbating any ensuing oil crisis. I infer from your comments that you are accusing the Republicans of collusion with "big oil"* to buy the election.* I infer from your comment, you aren't. Moreover, at these prices plenty of oil has reached the refineries. The bottleneck now lies with the refineries operating at virtual capacity. I doubt Clinton's decision has anything but psychological (if that) impact on the current crisis. I agree.

To: Mike M who wrote (59339)	9/24/2000 5:03:19 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 99985

Mike, I think that all that was needed was a psychological "block" to crude ascent. I think that most people know that there is no long term "shortage" of crude if it stays above $30, since at these prices, large additional "reserves" can be exploited. I believe the same is true with the intervention in "favor" of the Euro (except that longer term, I fear the Euro has not seen the bottom). Government should act to prevent market dislocations. They cannot prevent long term trends from asserting themselves, but if they can prevent panics, riots and civil disorder, they should act. Of course the election had a role, but even without an impending election, this was, IMHO, a good move. It is no different that the Fed pumping liquidity to avoid colapse of the financial market during periods of uncertainty like the Asian flu, the Y2K fears, or the LTCM debacle. Zeev