06 January 2015

Drowning in Oil

15 Tevet 5775


If you are clueless and don't understand how economics works, like me, you might think, like I did, that low oil prices, record high stock market values and a very strong dollar currency (3.96 nis today) is indicative of a booming US economy. Well, you, as well as I, would be wrong. Oh, it's booming alright, but like an atom bomb...


“Oil is incredibly important right now. If oil falls to around $40 a barrel then I think the yield on ten year treasury note is going to 1%. I hope it does not go to $40 because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be – to put it bluntly – terrifying.“

(Read the whole thing: Oil Falls Below 50 As Global Financial Markets Begin To Unravel)