HCLP

Why the Collapse in the Price of Oil is Reminiscent of Previous Financial Bubbles

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Bubbles all have the same characteristics of unrealistic expectations but are incredibly difficult to recognize until after the effect. Prices in an economic bubble can fluctuate erratically, and become impossible to predict from supply and demand alone. While some economists deny that bubbles occur,  the cause of bubbles remains disputed by those who are convinced that asset prices often deviate strongly from intrinsic values.-Wikipedia 2008 housing bubble and ensuing financial market rout “We recognized that, despite our suspicions, it was very difficult to definitively identify a bubble until after the fact,” -Alan Greenspan 2000 Dot Com bubble In  2000, AOL purchased Time Warner for US$164 billion. Shortly thereafter the bubble burst and technology stocks suffered a remarkable … Read more

The blatant injustice of US Government oil policy

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If China was dumping a product in the US market, and businesses in the US were not allowed to sell a similar one in the Chinese market, politicians would be up in arms at the injustice of it all.  Well, that’s exactly what’s happening in the oil market now. To provide some perspective, this is not a new issue.  Back in 1999, The U.S. Commerce Department on 9 August dismissed an antidumping and countervailing duty petition filed by a coalition of independent U.S. oil producers against Venezuela, Mexico, Iraq and Kuwait, saying that there was not enough industry support for the petition … Read more