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?]
Yu had this earlier.
ReplyDeletehttp://www.jamestownsun.com/event/article/id/169148/
anon 1
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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.
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Elsewhere, guar crop good. It rained in India.
That "rail backhaul' has become quite a story.
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