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| The Economy and Crude Oil |
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 [P]erhaps the really big questions center on whether the Banking System will survive and whether or not the Dollar will collapse. At present, we believe that a huge Banking System crisis will be seen in the next 18 to 20 months, and that several large ‘mainstream’ banks may end up failing. We also believe that the risk of a Dollar collapse is extremely high, and that an Argentina style Devaluation is brewing up like an afternoon thunderstorm in the tropics. Whether or not a deep recession evolves into a full out Depression may ultimately hinge on how much damage is inflicted on the Dollar as the falling dollar has been pushing up commodity prices over time, and in so doing, pushing down real consumer spending.
Of course, one big question to ponder when it comes to markets is how Oil will fare in an upcoming, perhaps global economic contraction. To this end, with the Oil market showing some signs of near term weakness, we thought we would spend a moment and try to understand where Oil may be headed in the months ahead.
Financial Sense
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Posted on Tuesday, March 25 @ 22:03:49 EDT by MarkL |
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Average Score: 5
Votes: 2
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