posted on Flickr by diaper
Remember 2008 and the price of fuel?
Time magazine had an article in its June 5th edition titled, “Will the Oil Bubble Burst?”
What a timely article!
Crude oil prices peaked the first week of July on the The New York Mercantile Exchange at $145 a barrel.
Oil is now selling at over $100 a barrel less.
I was confident that prices would drop. The way prices were rising just didn’t make sense to me. To me, the only thing that made sense was the idea that speculators bidding on the future price of oil was driving prices ever higher.
Several years ago, there was a piece on National Public Radio where a guy was talking about his new book on the coming bursting of the housing bubble. I knew that home prices were outrageous, but, until that point, I never thought about there being a pricing bubble in housing. It made complete sense. Though I never read that fellow’s book, it didn’t take me by surprise when home prices started to free fall.
The free fall in home prices and the rising cost of fuel, along with the prices everything else related ina any way to fuel usage, exacerbated the problems of the already anemic economy.
My forecasts for the future?
- The economy will begin recovering by the middle to the end of 2010.
- Global temperatures will continue to drop until at least 2020.