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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Salt'n'Peppa who wrote (120865)	5/19/2009 10:24:26 AM
From: axial	5 Recommendations Read Replies (2) \| Respond to of 206330

"I continue to believe that all current spin is lead by the big brokerages (or are they investment banks now?) as they sell into the top of this 2 month rally." Players who lost big money last year can benefit from interim status. Needed reforms are still being proposed, but have not been implemented. In that view, they are scratching and clawing their way back to financial stability; the fastest way to achieve that aim is to pull money from the market. Being a crude bull makes sense long-term; near-term it's difficult to justify the valuations we're seeing. Known fundamentals say there's too much crude supply, inventory, and not enough demand. When oil hit $147 we saw Saudis explaining helplessly that they weren't responsible. Right now we see valuations that defy common sense - and prices for crude, futures and oils keep rising anyway. Perhaps this is overly suspicious but I see two things: [1] A financial motivation for creating a bubble [2] A bubble without fundamental justification. The bigger danger - one I believe began emerging years ago - is that leveraged money can completely distort demand, supply and valuations. If that's true the "market" is no market at all. Jim