One can only hope.
I just read an article in Fortune Magazine by Shawn Tully, editor at large, who makes a compelling and logical case that oil is headed for the same fall that housing is currently experiening in many parts of the country and for the same reasons; supply and demand.
"So when the economy roared back in 2002 and 2003, builders couldn't turn out homes fast enough for buyers armed with those cheap mortgages. As a result, prices spiked. They no longer bore any relation to the actual cost of buying and improving land, or constructing and marketing a new house (at some reasonable profit margin). Instead, frenzied buyers were setting the price. Because builders were reaping huge windfall profits, they rushed to buy and develop land. And sure enough, those new houses were ready just as buyers were retreating to the sidelines because they could no longer afford to buy a home. That vast overhang of unsold homes is what's driving down prices today. The story is much the same with oil, with a twist."
Very interesting article and worth reading.
I wonder how many will agree with Mr. Tully???
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