Some stuff to think about

I've been a bit flummoxed (stage 3 perplexed) by the continuing increases in oil using the same stories from before. I find Engdahl's writing provocative. Here's an article that you might find interesting. If you click on the graphic, you will will be spirited away to his website.

I try hard not to get sucked into conspiracy theories and the like. But the Nigerian pipelines have been under siege for the three years I've been following the price of oil. I found this article to be helpful in filling in a few of the blanks. Here's a quote, but I urge you to read the entire article. I think you will find it worth your time:

The large purchases of crude oil futures contracts by speculators have, in effect, created an additional demand for oil, driving up the price of oil for future delivery in the same manner that additional demand for contracts for the delivery of a physical barrel today drives up the price for oil on the spot market. As far as the market is concerned, the demand for a barrel of oil that results from the purchase of a futures contract by a speculator is just as real as the demand for a barrel that results from the purchase of a futures contract by a refiner or other user of petroleum.

I'm not a believer in a pure free market--a free market is a perennial "bend over and smile" sort of creature. In addition to this "shadow" stuff, Barron's had written and article about the results of speculation in the commodities markets.

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In another article on Bloomberg states that consumer debt increased more than $15B last month.

Consumer credit increased by $15.3 billion for the month to $2.56 trillion, the biggest monthly rise since November, the Federal Reserve said today in Washington. In February, credit rose by $6.5 billion, previously reported as an increase of $5.2 billion. The Fed's report doesn't cover borrowing secured by real estate, such as home-equity loans.

You can find the article HERE.

Now you see why V and MA are doing so well. (You will probably understand, too, why the bankruptcy code was change a year and a half ago.). I am going to put my tin foil hat on lest I get too receptive to such conspiracy waves!

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I have a final bit of news that I wanted to share with you. It is from Minyanville (click to be transported).



You will not be surprised to note that there are two insurance companies on this list (PRU & HIG). We discussed the insurance company's exposure in this area more than a year ago. It is the ONE thing that I've done in my market life that has proven that a nobody, guppy investor such as myself CAN find STUFF that others ignore. I'm of the belief that it is what folks are NOT talking about that you should pay attention too. I also noted in Bloomberg that the write off for the banks to date is $384B. Was not the initial estimated $50B? Oh well.

Gary K is saying that a 'trading top' was put in place today vis a vis Stan Weinstein. I have Weinstein's book...and I've yet to finish it. "If it turns into a major top, we'll know soon enough."

I hope you found something useful in this post!