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CNN-FN – Commodities Bubble Bursting

I’m never quite sure what to say when the mainstream financial press reports that a bubble is bursting.

I can’t tell what’s going on with the underlying fundamentals in commodoties.

Although this sets the stage for QE III.

Now we can run them up again.

From CNN-FN:

“Commodities continued to sell off on Friday, with oil and silver sliding to their lowest levels since mid-March, as the dollar remained strong. Investors also remained on edge ahead of the government’s closely-watched jobs report.Oil slipped 3% early Friday to $96.85 a barrel. On Thursday, crude sank nearly 9% — the biggest one-day percentage drop in two years.

Crude prices neared $114 a barrel last month as fears about supplies took hold following escalating violence in Libya. But as investors got ‘accustomed’ to those concerns, oil prices became mired in a fairly tight range…until this week.

In the past week, oil prices have tumbled more than 10% on worries that recent disappointing economic reports may mean we are in for an economic slowdown.”

CNN Bubble Article

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