Thursday, September 13, 2012

I Almost Missed This .....

Stunningly bad jobs report --> Fed now has to act --> inflationary pressure --> hedge --> oil spikes (now up over a buck; flirting with $100 again).

Watching the Fed is beginning to look a lot like watching Apple events: leaks/expectations --> hype/lots of talk --> the event --> less than expected --> disappointment.

As noted before, I hope the Fed acts: I'm curious to see what it has left in its quiver. [Later: so that was it! $40 billion/month to buy mortgages. Hmmm. I honestly don't get it. I assume most folks need a job before they can buy a house, but again, that's just me. I don't think this makes it easier for anyone to buy a house; mostly just allows some more re-financing and keeps more people from losing their homes. But the immediate effect, it seems is this: commodities rise significantly. Oil jumped in price --> price of gasoline and diesel will increase --> hurt employers buying gasoline for their drivers (who care not how they drive company vehicles) and hurts individuals filling up their own tanks. So, we go into a period of increasing the price of gasoline?]

2 comments:

  1. Yu had this earlier.

    http://www.jamestownsun.com/event/article/id/169148/

    anon 1

    -------
    Also:
    listening to more Canadian producers. Condensate is "liquid gold." Very substantial premium to crude.

    The opposite of the US gulf.

    Rail backhaul mentioned again.

    Costs coming down.

    ---
    Elsewhere, guar crop good. It rained in India.

    ReplyDelete