Friday, July 14, 2006

Five dollar a gallon gas?

A commenter over at FireDogLake posted a link regarding recent trading activity on oil. This person who wrote this, purportedly a oil trader, says that the only time he has seen these trading patterns in the past has been preceeded by a jump of at least 10 dollars a barrel. He also makes a statement that someone is making a very large bet that there is something like a 70% chance of 90 dollars a barrel.

That's pretty damn scary. I can afford that, but I doubt a majority of the families in America can. At what point does our economy grind to a halt because no one can buy anything because it's too expensive, even if they weren't using all their discretionary cash to put gas in the car?

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