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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (875144)	7/25/2015 12:37:48 PM
From: tejek	Respond to of 1578146

It's an all out oil war between the US and Saudi Arabia. That's going to keep oil prices depressed for awhile. I think that's a good thing. However, the negative is that our oil boom has been financed with junk bonds. That worries me, because when rates start to rise, those junk bonds will start to default in great numbers, which could put a big damper on our oil production. Then you combine that with a strong dollar and if the Fed raises rates, an even stronger dollar, and what we'll get is even lower oil prices and commodities. The world is still run on the petro-dollar, so higher dollar value relative to other currencies means lower oil and other commodity prices. So yes, oil is in for a long low period, kind of like in the 90s. What goes boom, must go bust, unless the government interferes. In every rainbow, you will find the dark cloud. Mazel tov!