Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Thursday, April 10, 2008

Interesting Morning Reads

Getting Ready for the Third Wave of Financial Panic
Mortgage rates are going up even as central bank rates are going down, and it means that banks still see more skeletons in each other's accounts. More scrificial lambs mght be needed...

Oil Prices Rise to Record $110 a Barrel
"I keep hearing from professional traders who are getting out of the oil market because it is just too volatile," said Sean Brodrick, a Florida-based natural resource analyst for the e-mail investment newsletter Money and Markets."When you scare away the pros," Brodrick said, "you know you're looking at a real roller coaster ahead."
[XX actually, I believe I said "sitting out" -- it's not like these guys are retiring. They're just trading grains, which are an easier trade right now, and avoiding the headache (and wallet-crunch) of energy at this time].

Inflation Is Getting Worse
[nice charts in this one]No one really knows where prices will end up -- despite their best intentions and good faith efforts to try and figure it out. However, here is the basic issue with energy demand: so long as India and China are still growing at strong clips, expect more upside price pressure. Those two countries add 2 billion people to the demand side of the equation.
Check out my new gold and energy blog at