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.
“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.”