Tags: Oil, Oil bubble.

Interesting article in which NY Times columnist Paul Krugman asserts that the rise in oil prices is not a bubble. He asserts that because there hasn't been hoarding, a general reaction to bubbles, there is no bubble but rather a lack of supply in the face of growing global demand.

 

Submitted: May 12, 2008    Views: 157    Comments: 3    Likes: 1   


View Article: http://www.nytimes.com/2008/05/12/opinion/12krugman.html?em&ex=1210...


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Comments Received:

John Spaulding
(Unregistered)

I believe there is a bubble. It's like the Internet in 2000. Everyone looked at all of the growth numbers and used them to justify absurd valuations. Same with housing. The key to any bubble is that there has to be a kernel of truth behind what is driving prices higher.

What happened in the 70s wasn't a bubble, it was a scare. Those are very different phenomena.

John

Posted: May 12, 2008

Terrence
(Unregistered)

I was watching CNBC this morning and they mentioned this article. They had a couple of "experts" on discussing whether there was an oil bubble or not. They all said no , that it was driven by the fundamentals. Then, they went on to say that the price of the dollar was impacting prices. Bit of a discrepancy there.

These are of course the same experts who said there wasn't a housing bubble two years ago. Anytime prices rises dramatically in a short period of time, you've got a bubble, in my opinion.

Oil will be below $80 a barrel by the end of the summer.

Posted: May 12, 2008

Charlie
(Unregistered)

We're just a fat gluttonous society. Oil goes up but people still drive their massive SUVs and live in enormous homes. We are reaping what we have sowed. Oil will hit $200 per barrel and still people will drive on.

Thank you George Bush.

Posted: May 13, 2008



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