usvi-on-line
the names alone had me laughing
-
designbyroe
- Posts: 1348
- Joined: Tue Feb 27, 2007 1:27 pm
- Location: Chilaxin on White Bay at least in my mind
the names alone had me laughing
BY FLIP SIDE GAZETTE CORRESPONDENT CANOLY HOPE
Oil today dropped to just $9 per barrel marking the largest one-day drop in history and is now trading at the lowest level in 30 years. "Once it started falling and the margin calls ballooned, there was nothing to stop it," said fund manager Caut Offguard. The army of speculators couldn't sell out quick enough as billions of dollars were lost in just a few hours.
Economic analyst Bubbles R. Burstinfast worries we may see it drop further, but claims it should stabilize at some point since the fundamentals suggest oil should be trading around $20 per barrel.
Oil executives claim they are victims and have asked the government to step in and help.
Warning Signs Were Everywhere
"It was insane if you think about it," said energy analyst Shud A. Nown. "Stockpiles of crude would go down while stockpiles of finished products like gasoline would go up. The refiners knew that demand for finished product was gone so why buy more raw material they would be stuck with?"
Many have argued that China and other markets would replace shrinking U.S. demand, but cracks in that argument have now become larger than the Grand Canyon. Contracts for oil had reached 15 times the amount of actual oil supplies. Once panic set in, the only ones buying oil were businesses that actually had a use for the product and without limitless speculation, oil prices plummeted to an organic level.
"It reminds me of the condo housing bubble where thousands of people were buying houses with the intention of flipping even though first-time home buyers were gone," said Jaime Cramero of Dinero Loco. "When your hair dresser has switched from flipping houses to trading oil futures you need to take note." When asked if one word could sum up his sentiment about how this will affect the global economy, Jaime responded, "Boo-yah."
Not everyone lost out. Independant investor Lu Kee began short selling oil over the past two weeks. Kee claims that once oil broke $145, five times what it was trading just a few years ago and more than double in a year, "the jig was up".
What caused this mess?
Opinions are mixed, but most agree that the "greedy herd" kept pushing up prices beyond fundamentals and continued feeding each other more and more bullish news while downplaying all bearish signals.
Dr. Min D. Stoody, a psychologist who has studied aggressive compulsive behavior, believes the trading fever was catapulted from what she refers to as "news headline intoxication." Along with Economist Kohman Senze, they together have authored a book set to hit shelves next week titled "Long On Oil and Short On Bigger Fools - The 2008 Oil Bust." The book was to be released this week, but the covers are now being reprinted due to a title change. The book was originally to be titled "The Inevitable Oil Collapse Is Coming." Senze claims just the mere hint of something reported related to oil prices, regardless of how material was ignored because traders were in a state of what he calls "fundamentals oblivion."
The Aftermath
Overnight, reports of countless speculators committing suicide spread like wildfire. It will take a few weeks to get a final count, but many say the numbers will be greater than what happened after the stock market crash of 1929. Callers flooded 911 operators with horrid stories of jumpers on the upper east side of Manhattan. Neida Doc, a distraught emergency room surgeon said, "I've never worked four different suicides in one shift."
The widow of a former trader who asked to remain anonymous explained, "I told him he should buy gold if he wanted a hedge to the dollar instead of oil, but it was a disease that couldn't be stopped."
As horrific as the human toll is, it's hard to find persons who are sympathetic.
A number of bankruptcies of firms involved in oil speculation are expected to happen today and probably stretch into the weekend. A clerk at a federal courthouse reported she was put on alert to work overtime through Sunday. Courts will likely be filled with class action lawsuits from retirees as well, targeting fund managers who ignored fundamentals. Federal investigators will also be hunting down these same traders for alleged violations. Rumors of several already fleeing the country are fairly widespread.
What's next?
Experts agree: consumer behavior is forever changed. Aboutoo Plumet says, "Oil barons may be right about energy demand growing by 50% in the next thirty years, but their worst fears are coming true. The demand will be supplied by energy sources other than crude oil."
Atlantic City commuter, P.D. Oft says, "I still have another year left on my SUV lease, but you can bet I will never be trapped again driving a car that doesn't get over 30 miles per gallon. Gas pushing $5 has burned deep in everyone's mind and that scar will never heal." However, with the introduction of the Brilliant Car, the new solar electric powered vehicle that does 80 miles per hour, and has a range of 300 miles, will probably be in P.D.'s driveway before another fossil fuel vehicle is. Sunny Day of the Solar Observer Gazette refers to gasoline powered cars as Dinocars which will become extinct soon.
Several former speculators now broke have founded Adopt-A-Trader. Their basis is that downsizing from a 8,000 square foot home to less than 5,000 will cause almost as much harm as having to sell their Italian sports car and be left with only a German luxury sedan.
Clearly this whole story is for entertainment purposes because oil has not fallen this far yet, but if we all band together and continue to conserve energy, we will bust this oil bubble.
Oil today dropped to just $9 per barrel marking the largest one-day drop in history and is now trading at the lowest level in 30 years. "Once it started falling and the margin calls ballooned, there was nothing to stop it," said fund manager Caut Offguard. The army of speculators couldn't sell out quick enough as billions of dollars were lost in just a few hours.
Economic analyst Bubbles R. Burstinfast worries we may see it drop further, but claims it should stabilize at some point since the fundamentals suggest oil should be trading around $20 per barrel.
Oil executives claim they are victims and have asked the government to step in and help.
Warning Signs Were Everywhere
"It was insane if you think about it," said energy analyst Shud A. Nown. "Stockpiles of crude would go down while stockpiles of finished products like gasoline would go up. The refiners knew that demand for finished product was gone so why buy more raw material they would be stuck with?"
Many have argued that China and other markets would replace shrinking U.S. demand, but cracks in that argument have now become larger than the Grand Canyon. Contracts for oil had reached 15 times the amount of actual oil supplies. Once panic set in, the only ones buying oil were businesses that actually had a use for the product and without limitless speculation, oil prices plummeted to an organic level.
"It reminds me of the condo housing bubble where thousands of people were buying houses with the intention of flipping even though first-time home buyers were gone," said Jaime Cramero of Dinero Loco. "When your hair dresser has switched from flipping houses to trading oil futures you need to take note." When asked if one word could sum up his sentiment about how this will affect the global economy, Jaime responded, "Boo-yah."
Not everyone lost out. Independant investor Lu Kee began short selling oil over the past two weeks. Kee claims that once oil broke $145, five times what it was trading just a few years ago and more than double in a year, "the jig was up".
What caused this mess?
Opinions are mixed, but most agree that the "greedy herd" kept pushing up prices beyond fundamentals and continued feeding each other more and more bullish news while downplaying all bearish signals.
Dr. Min D. Stoody, a psychologist who has studied aggressive compulsive behavior, believes the trading fever was catapulted from what she refers to as "news headline intoxication." Along with Economist Kohman Senze, they together have authored a book set to hit shelves next week titled "Long On Oil and Short On Bigger Fools - The 2008 Oil Bust." The book was to be released this week, but the covers are now being reprinted due to a title change. The book was originally to be titled "The Inevitable Oil Collapse Is Coming." Senze claims just the mere hint of something reported related to oil prices, regardless of how material was ignored because traders were in a state of what he calls "fundamentals oblivion."
The Aftermath
Overnight, reports of countless speculators committing suicide spread like wildfire. It will take a few weeks to get a final count, but many say the numbers will be greater than what happened after the stock market crash of 1929. Callers flooded 911 operators with horrid stories of jumpers on the upper east side of Manhattan. Neida Doc, a distraught emergency room surgeon said, "I've never worked four different suicides in one shift."
The widow of a former trader who asked to remain anonymous explained, "I told him he should buy gold if he wanted a hedge to the dollar instead of oil, but it was a disease that couldn't be stopped."
As horrific as the human toll is, it's hard to find persons who are sympathetic.
A number of bankruptcies of firms involved in oil speculation are expected to happen today and probably stretch into the weekend. A clerk at a federal courthouse reported she was put on alert to work overtime through Sunday. Courts will likely be filled with class action lawsuits from retirees as well, targeting fund managers who ignored fundamentals. Federal investigators will also be hunting down these same traders for alleged violations. Rumors of several already fleeing the country are fairly widespread.
What's next?
Experts agree: consumer behavior is forever changed. Aboutoo Plumet says, "Oil barons may be right about energy demand growing by 50% in the next thirty years, but their worst fears are coming true. The demand will be supplied by energy sources other than crude oil."
Atlantic City commuter, P.D. Oft says, "I still have another year left on my SUV lease, but you can bet I will never be trapped again driving a car that doesn't get over 30 miles per gallon. Gas pushing $5 has burned deep in everyone's mind and that scar will never heal." However, with the introduction of the Brilliant Car, the new solar electric powered vehicle that does 80 miles per hour, and has a range of 300 miles, will probably be in P.D.'s driveway before another fossil fuel vehicle is. Sunny Day of the Solar Observer Gazette refers to gasoline powered cars as Dinocars which will become extinct soon.
Several former speculators now broke have founded Adopt-A-Trader. Their basis is that downsizing from a 8,000 square foot home to less than 5,000 will cause almost as much harm as having to sell their Italian sports car and be left with only a German luxury sedan.
Clearly this whole story is for entertainment purposes because oil has not fallen this far yet, but if we all band together and continue to conserve energy, we will bust this oil bubble.
There's no $ sign on a peace of mind, this I've come to know
If it does I hope we still try to conserve and get away from oil probably not though. Good things have come from these gas prices, not that I like thesr prices but it has been the catalyst for needed change. Go back to two dollar gas and it will all go away for most.