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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: Real Man who wrote (7388)5/17/2008 10:13:59 AM
From: Giordano Bruno  Read Replies (2) | Respond to of 71475
 
Ever chart this with SPX?



To: Real Man who wrote (7388)5/18/2008 3:39:04 AM
From: dybdahl  Read Replies (1) | Respond to of 71475
 
Energy and the gas pump is not the same - maybe they CPI adjusted their numbers? Adjusted by official CPI numbers, which are low, gasoline is definitely cheaper to me today than 2 years ago.

I don't understand all in energy prices, but I know that sometimes we have negative electricity prices in Denmark, because we produce more electricity than what we and our neighbors need. So the grid is basically paying consumers to consume more electricity.

However, there are multiple electricity markets. There's the long-term planning market, the spot market, and probably others, in order to make long-term planning possible, while at the same time ensuring a proper adjustment of production and consumption. I'm not really sure which market the negative prices end up in, but it's surely not the long-term planning market.

Now that electricity is so hard to put a price tag on, what about oil? It's even more complicated because there are many types of oil and many types of contracts. Natural gas, unrealiable energy (wind power) and others are difficult, too.

Focusing on the price at the gas stand is probably making things too simple.

Remember, statistics is about removing information. When you calculate the average of 1 million numbers, you remove more than 99.9999% of the information. You need to pick very carefully, what kind of information you want to keep, when selecting statistical methods.