Monday, December 01, 2014

Where it stops - no one knows. NO ONE.

Last week the oil freak out started in earnest. It was even making me nervous and I've been blogging about this since summer. Today it's almost all my news feed is talking about it. And the amount of stories talking about deflation are freaking me out even more. If we do in fact reach deflation rather than just disinflation - there are no tools to fight this. Sure we could print more money. But Japan is the example now. Right? Just printing money does not cause inflation if people just hoard that money.

You guys know I've been trying to figure out the oil thing for months. So when I read that an oil baron has lost half his 20 billion dollar fortune in this oil crash - it makes me think that low demand is more at play than the US producing more. There is no sane oil man in the country that would take his hedges off if we were just producing more. There has to be more at play.

It always makes me nervous when someone who built their whole fortune on one thing fails to see the market changing. It's all this guy knows! It makes you feel like no one knows exactly what is going on.

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