Badger Blog Alliance

Sic Semper Tyrannis

Thursday, June 12, 2008

Re: The tale of two commodities

"Tee Bee,

You are mixing up different ideas."

Marcus, that was largely my point.

Housing and oil are apples to oranges, so using one as a vector to determine behavior in the other - as many analysts have been doing*, and as has been quoted here by posters as an indicator that gas/oil prices will go down - doesn't hold water.

I admit that I like mixing ideas up, but that's another (unrelated) post.

*Remember Fortune's Shawn Tully: "Why oil prices will tank: Arguments that $4-a-gallon gas (or even higher) is here to stay are dead wrong. Housing's boom-and-bust cycle tells you why" ?