Sunday, March 01, 2009

I brought him to the dream. He had the coolest sandals that I have ever seen

As the battle rages on about who and what needs to be done to fix the economy, the root cause has yet again been neglected from the conversation. We've lived in a world with too much credit, its been brewing for a long time.

My opinion, the two things I look at the see when the economy will 'rebound,' or at least rightsize.

1 -- The Price of Oil -- There's no coincidence the price of oil falls with the economy. Which came first? While most people complain about the greedy oil people, their 401k's are stuffed with oil stock, go take a gander, I'm sure most are still, by default. Currently there is a stockpile of oil in ports all over the world, you can't just 'turn the spigot 'off', hence a hedge on the price. When this lowers, oil will settle between 75 - 90 bucks a barrel, rightsizing this toxin, which will aid in bringing things 'back to normal.'

2 -- Home Depot Stock -- Watching the ups and downs, these folks are reading the charts that will answer the ultimate question, 'when will people begin investing in their homes again?'

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