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Mascoutah, Illinois | Today, crude oil crossed $85 at the NYMEX with heavy institutional buying. The chartists are saying there is very little resistance from this area up to $90. Last week, there was heavy institutional call buying at the $100 strike during the summer months. There was also heavy call buying for the $120, $130, and $140 strikes in the summer of 2011.
My question is, can the economy continue to rebound in the face of higher energy costs?
2011 could have a triple whammy (sorry Ehoff for stealing your phrase) for us if you look at where we might be headed.
1. The Bush Tax Cuts expire at the end of this year leaving the consumer with less take home pay.
2. We have to assume interest rates are headed higher with a global recovery starting to take shape.
3. Will $3.00-$4.00 gasoline suck the life right back out of the consumer?
I guess we will get those answers pretty soon. | |
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Any thoughts on crude oil and the economy???
