When we think of volatility, we often think of the physical movement of prices in the markets. We should also think of the volatility of the mind. Yesterday, analysts said they were waiting for Wednesday's EIA report before making any big moves in the market. Today, prices fell by a lot. And there is a lot to think about.
Overriding all concerns is the Fed's intention to inflate the economy with quantitative easing. It did not work for Diocletian and it won't work for Bernanke. I don't think that Ben will be able to retire to his cabbages any time soon as Diocletian did after he issued his Edict on Coinage.
The Chinese and the South Koreans are doing the reasonable thing and using monetary policy to fight inflation. The Europeans are trying to find solutions to their debt problems and this has caused the euro to fall versus the dollar. Added to this news was the rumor that crude and product inventories have built once again and prices had to fall significantly.
Today, crude -$2.53, $82.22; gasoline 3.88¢, $2.1557; distillate -6.17¢, $2.307.
No comments:
Post a Comment