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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (38181)	8/9/2005 10:32:34 AM
From: Crimson Ghost	Read Replies (1) \| Respond to of 110194

Wall Street can spin almost anything positively. They may argue that surging oil prices are bullish for bonds since this increases the excess cash of OPEC nations -- and much of this will be invested in western markets. I don't buy this kind of BS for a moment, but lots of folks would no doubt.

To: russwinter who wrote (38181)	8/9/2005 10:57:16 AM
From: Wyätt Gwyön	Respond to of 110194

this is exactly the kind of thing to expect in a peak oil world. it's not the end of oil--it's the end of cheap oil. remember a month ago, the enormous Thunderhorse rig almost capsized (what do you expect when you drill 6000 ft in a hurricane zone), and now with the best non-OPEC prospects in landlocked Central Asia. to add insult to injury, the oil cos have the lowest multiples of any non-financial industry on SPX, despite contributing the majority of profit momentum the last few years. so, it's not like capital is exactly beating down the market's door to ramp up supply. i think this is the phase where service cos just make a killing.