Quote:
Originally Posted by xbarretx
so make a run on the banks and invest in GE NOW?
p.s. if oil goes to 175 and prices get above 4.35 oil will get closer to rendering its self useless. trust me if i lose my job (knock on wood) i wont buy gas...and as the rest of the world his recession neither will they..the oil is a bubble.. it will burst...not this year (depending on whom gets ellected maybe mid 09)
times wont get that bad b/c the FED cannot simply stand around and put on magic sunglasses that makes inflation invisible to them. what WILL happen will either be a correction sooner than later thus everything can begin to finially work itself out. or the FED will have no choice but to begin raising rates which initialy will hurt the economy and help it at the same time as inflation will begin to fall and the oil bubble will burst.
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Why would $175/bbl matter? $111 oil hasn't stopped anyone from buying.
The FED isn't standing around. The problem is they have no control over the credit crisis and can do nothing but bail out banks. That doesn't solve the problem. Yes, the markets will eventually work themselves out, but that could be a LONG way down the road. There are periods in history when the markets didn't make a penny for years and years.