More terrible advice from the denial factory of the American Main Stream Media

On Tuesday past, the price of WTI December crude oil contracts fell $3. That night, Larry Kudlow, an economist with his own CNBC TV show, made the suggestion it was time to short oil and go long the banks (betting oil was heading down and bank share prices heading up. The very next day, crude oil surged nearly $6! And the following day, the bank index fell 5.14 %! Great call Larry!

The energy crisis is a major component of the housing crisis, which is a major component of the coming banking crisis.

Exxon

Today Exxon reported earnings that disappointed Wall Street. The coverage was focused on their troubles in refining. My eyes focused on this:

“Oil and natural-gas output from Exxon's wells dropped 2.1 percent to the equivalent of 3.92 million barrels a day, led by a 14 percent decline in crude production in Africa, the company's biggest source of oil. Lower output more than offset gains from higher crude prices, the company said.” Bloomberg News

Big oil’s production has been in decline for several years. Oil prices have risen 800% this decade, but the big guys have seen their production decline. What else would Peak Oil look like? It would look just like this.

Keep your eye on the ball. Trumpets will not blare, nor the earth to quake. The economic fallout of declining energy supplies will more likely be a slow, grinding, wearing event punctuated by periods of rebound. That is, until the concept becomes conventional wisdom – at which point the political and social fallout might make the economic fallout pale by comparison.

Mentatt (at) yahoo (d0t) com