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wolfhounds (< 20)

10 Reasons for Coomodities Bust

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11

May 30, 2008 – Comments (8) | RELATED TICKERS: MOO , VNR , USO

10) Regulators decide to investigate speculators. Still trying to find their telephone numbers.

9)  Not to be outdone, Congress decides to investigate regulators. Can't find their telephone numbers either.

8)  FDA rules that petroleum products can no longer be used in margarine. 

7)  Major oil field discovered under White House.

6)  Oops, oil discovery is actually secret pieline for syphoning oil.

5) Merril Lynch, Pierce, Fenner, and Smith merging with Socco and Venzetti to form new a capella group. (sorry, writers on strike).

4)  Rice exports resume in Vietnam and Thailand after rats have their fill.

3)  India decides basmati rice tastes much better than whole wheat, explaining wheat's  40% drop.

2)  Rumor circulates that T. Boone Pickens makes calls on oil prices by throwing darts.

1)  U.K. banks discover they can't even spell LIBOR, so what the hell was the dollar worth anyway? 

8 Comments – Post Your Own

#1) On May 30, 2008 at 2:29 PM, madcowmonkey (< 20) wrote:

Big Grin. That was great. 

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#2) On May 30, 2008 at 2:31 PM, wolfhounds (< 20) wrote:

Thanks madcow. Just goes to show what 12 oz of mexican espresso will do for you.

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#3) On May 30, 2008 at 3:18 PM, PhillyGator (99.70) wrote:

Awesome stuff. Great piece. I'm actually thinking of shorting every Commodity right now (in CAPS...not real life). I figure I'll either be ahead of Spec Bear by next month, or dead last.

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#4) On May 30, 2008 at 3:20 PM, relusion (< 20) wrote:

very kewl

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#5) On May 30, 2008 at 4:38 PM, EnigmaDude (35.24) wrote:

excellent - timely, relevant and LOL good! (Letterman would be proud)

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#6) On May 30, 2008 at 4:56 PM, rudolphsteiner (92.42) wrote:

Well, I was sure commodities wouldn't crash, but after reading your post I must reconsider. So, I'm looking for a buyer for the 4,000 loaves of bread in my freezer, and my vast collection of silver-plated hairpins, if you're interested? So much for speculation!

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#7) On May 30, 2008 at 5:21 PM, TMFSinchiruna (98.15) wrote:

I'll take the silver-plated hairpins, please!!  :)

PhillyGator... good luck with that short commodities strategy.  :)  If you end up ahead of SpecBear, I'll be in the poor house, as 95% of my real-life portfolio is in commodities.  That's how sure I am that all this bubble nonsense is just that.

Here's my article on Joy Global today.  I also recommend a look at the Joy Global website.  Read their last 2 quarterly earnings reports, Q1 and Q 2008, and then tell me there's a bubble.

Coal and iron ore in deficit, steel supply lagging demand, new mines having difficulty coming online amid cash-strapped lenders and skyrocketing costs.  Where is the strength of the dollar going to come from that would lower commodity prices?

Everybody's running around screaming bubble but no one's focusing on evidence! 

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#8) On May 30, 2008 at 7:01 PM, wolfhounds (< 20) wrote:

Ha, I'm just having a good laugh.

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