Finally, we are starting to hear admissions of the speculation bubble that has hit all of us at the gas pump. Doug Newcomb’s MSN Autos article, “Gas Prices Demystified”, provides a realistic insight into this most recent of bubbles. The fear of a Y2K meltdown combined with recovery mode interest rates led to the Dot.com bubble that still haunts America. Money seeking a haven, took advantage of lower interest rates and safer investments and caused the current real estate crisis. Now, we have gone from about $25 a barrel after the fall of Badgad to $117 today. The reasons we have been told have varied and challenged our intelligence much as they did in 1974. It is definitely worth reading Mr. Newcomb’s article that, frankly, admits that speculation and greed are at work. Even the talking heads on CNBC have been admitting to speculation much more lately. Remember, bubbles burst.
Tags: barrel, Dot.com, greed, interest rates, investments, speculation, Y2K meltdown
Posted in Gas Prices