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Thursday, February 24, 2011

Crude Tops $119/Barrel

Crude oil surpassed the $110/barrel mark this week and touched the $119 point and it is not by accident.  Turmoil in the Middle East has created a tsunami of trading fury on the NYMEX and largely, the American public have overlooked it and we do so at our peril.

The Obama administration and its push against domestic energy production has contributed to the unsteady nature of commodities trading, including the ridiculous ban on offshore exploration.  This is a critical time for the United States and if we believe our economic mess couldn't get worse, you're wrong.  Imagine gasoline at $7/gallon this fall.  Imagine what that does to delivery of merchandise and the cost of everything from groceries to shaving cream.  If this administration doesn't act quickly, we're going to be in a world of hurt.

It isn't an accident that I watched an intriguing documentary last evening on the fall of Enron.  "Enron: The Smartest Guys In The Room," is a telling documentary of the global energy giant, Enron, and the massive economic destruction their shell game cost this country.  The participation of banks and accounting firms in what will go down as the worst business scandal in our nation's history shows the frailty of the markets.  Today, we have the housing market boom and bust and the worthless paper many home loans were written on recently. 

I find it horribly ironic that 20,000 people lost their jobs while Ken Lay and his boys walked away with millions of dollars.  And the same banks who participated in the boondoggle for the rich are now foreclosing on average Americans who are struggling.  Hypocrisy, thy name is Wall Street.

We better pay attention, people, and put some pressure on our elected officials in Washington to do something about it quickly.  Of course, our elected officials are still pretty busy patting one another on the back about their victory in November...