Where is oil going? Could go to $58, and if it breaks $58 God only knows. Chart here. We will now find out for sure if the manipulation many have said has been going on really is the cause of the sky high prices. New production has come on line, we are awash in crude supplies, BUT we are also facing huge new demand. GM and Ford are coming out with the biggest SUVs yet, but with big changes in engines and supposedly much fuel economy. However if you will check the CRB, the Commodity Research Bureau Index which measures a basket of commodities, you will see a virtual collapse. This shows up as cattle prices come down, hog prices come down, grains come down, and now gold is coming down. It has broken through initial support and the next stop is $499; who knows. Keep in mind that the "normal" range of the CRB index is in the very low 200s and the current reading of 325 reflects the metals and crude inflation as well as the still very high meats.
US Auto market
The new guy that Kirkorian has inserted into the Detroit ingrown board of directors at GM will not do a thing to turn the company around. The thinking among the people who know the business is that the main problem facing GM and Ford is the perception among car buyers that neither company can make a good car. While this perception is no longer correct, it is an image that will not go away. I believe the slide began way back in 1968 when, after Ford cleaned the clocks of every car company in the world by winning every car race on the planet--especially including Le Mans---GM and Ford slinked off the racing scene leaving the unmistakable impression that they were afraid to compete head to head with MCB, Ferrari, Honda, and the rest. It's going to take a return to WINNING racing for the two companies to recover their image.
The phony media and Cheney shooting: These total creeps in the MSM and their envy over a small town Texas newspaper scooping them (with reporters who actually leave Washington D.C. and work) is best told today HERE in the WSJ. Jesus, just watching that White House Press Corps makes me yearn for Capital Punishment for parking tickets and any reporter who stays on the job more than six months.
No more blogging today and perhaps tomorrow
2/15/2006
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1 comment:
i could care less if ford can win a race. they still won't be able to make a car worth a crap. i owned a ford escort and so did several of my friends in college. every single one of us had the same problem every year. the alternator would give out and kill the battery because ford used a 70 amp alt instead of a 150 amp. 70 amps isn't enough to carry the load and ford knew this and wanted the amp to blow so they can reap the repair parts money. same thing with the air conditioner.. every year the compressor would blow out.. every single year. they will never get another dime of my money.
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