There are hedge fund managers out there trying to tell the world that it will sink again. The impetus is the rising oil price to $125. It just doesn’t make sense. The reason oil price rises is due to speculation that the economy will do well.. And also thanks to Gadaffi. Nonetheless, oil price is a reflection of the economy. The previous bubble was due to the subprime mess. However, there is no sub prime mess now, thus I don’t see a reason for a liquidity crisis that could spark the double dip.
A matter of concern might be our fiscal position. The fear of default in Europe has increased tremendously, and now that fear is spreading to states in the US.
Luckily, industrials continue to be strong, and Obama’s rail and other stimulus plan might help prop up our ailing economy.
The idea is that we need democrats to continue spending and yet control the deficit.
No comments:
Post a Comment