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

To: Real Man who wrote (9624)	7/17/2008 11:51:09 PM
From: TH	Read Replies (2) \| Respond to of 71475

Vi, On this point we disagree. I think Oil has two major drivers. First, there is a finite supply and a global increase in demand. Thirsty America can't drink cheap forever. So if one Chinese in a thousand has a car, but next year it is two out of a thousand, then we have demand driver with exponential potential. Second, I think our good buddies in the middle east are tired of the haircut on their massive dollar holding and suffering the importation of inflation from their dollar peg. The oil rally is a tool those buddies are glad to use to make their point. And the point is that if you let your dollar drop into the abyss, we will let our oil rise to whatever level is needed to offset the loss of our dollar holdings. This is all about the dollar. GT TH

To: Real Man who wrote (9624)	7/18/2008 2:00:50 PM
From: RockyBalboa	Respond to of 71475

Another sign of an oil top. Dead bodies floating around; unlucky companies can not afford hedges, so they are bought in at the highest prices possible. And then?? SemGroup Energy Partners' parent eyes bankruptcy Analysts cite possible hedging problems at SemGroup LP NEW YORK (MarketWatch) -- SemGroup Energy Partners L.P. said its corporate parent is considering filing for bankruptcy, casting doubts over one of its key revenue sources just a year after the oil-pipeline owner went public along with a crop of other energy partnerships. SemGroup Energy Partners L.P. fell 18% to $9.04 as one of the biggest decliners Friday on the Nasdaq, following a 50% drop in the previous session on downgrades by debt rating agencies. Analysts raised the possibility that SemGroup LP -- the privately held parent of the public Energy Partners unit -- may not have funding to cover anticipated margin calls related to its price hedges of oil inventories. marketwatch.com LOOK FOR OTHERS... SemGroup Energy Partners held its initial public offering on July 18, 2007, at a price of $22 a common unit. With 12.5 million units in the IPO, the partnership raised proceeds of $275 million, all of which went toward paying down debt. In February of this year, it offered another 6 million common units at $23.90 each for proceeds of $143 million. One of about 55 master limited partnerships now trading publicly, SemGroup hit a 52-week high of $31 a unit shortly after it went public last year, but traded at about $26 a month ago.