Quote:
Originally Posted by fielderLS3
We might see $4, but not $5. People predicting Armageddon have never made good predictions.
Calm down guys. There is no shortage of supply what-so-ever. The price is being driven up by speculators with an almost infinite supply of easy Fed money at 0% interest behind them, allowing them to buy on margin at 6% down. Like all Fed bubbles, this one will burst too. We've seen this story before. Eventually, the easy money loans will come due, and when they do, all these speculators will have to liquidate those investments, and the price will come crashing down faster than it went up, just like in 2008. These markets are behaving exactly like 2008, and the result will be exactly the same. We just have to make it through the next couple of months.
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As far as I'm aware of, there is no contango, so it's not the fault of the speculators (nor was it in 2008). Plus, to say supply will not be effected by these revolutions is frankly wrong. I'm really wondering the reasoning behind that curious conclusion. However, you're not too far off about the Fed and the inevitable liquidation.