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> (email exchange)
> Warren, Seems like we’ve seen a tiny repeat of what happened during
> the ( Mosler coined) Mike Masters inventory liquidation last summer.
> That is, crude oil drops and takes everything else down with it all driven
> by the fear of increased scrutiny regulation on commodity speculation.
> Do you agree? NY Times article a few days ago.
Yes, also the fact that it’s done it for the last few years about this time gets the specs going in that direction as well. If there’s nothing ‘fundamental’ going on this year it could quickly reverse as Saudis hold price and let quantity adjust.
Also, lower crude makes dollars harder to get overseas (our oil bill goes down) which tends to firm up the dollar.