Sunday, April 20, 2008
The Silence is Deafening
Over the past 4 or so years I have communicated my position on U.S. oil supplies, oil imports, and the U.S.$ to my brethren on Wall Street. I have traded email barbs with good humor. Now, with oil prices substantially over the $100 mark, I find the silence DEAFENING.
Allow me to shed a little light on Wall Street.
Folks who make a living in the U.S. financial markets are TERRIFIED of the energy issue, and so MUST DENY IT. Their commissions and fees DEPEND energy prices declining, and doing so before the reason they do decline is the lack of supply decimating the economy and hence their demand. This is the FINAL game of musical chairs for this generation of market participants.
Reality does not give a good fart about what you perceive, what you want, what you hope, what is convenient. "Faith" should be confined to the things nobody really believes in.
Life has been, and always will be, a competition for survival and primacy (argue the point if you like, but those who do will likely not be the folks who pass on their genes, evolutionary dead ends). The energy condition will continue to present opportunities, though the opportunities presented might not be what you originally wished for. Well, that's just too bad. When I was a kid, I wanted to be like my hero, Bobby Mercer, the Yankees' center fielder. Problem was, I couldn't hit a beach ball with a bat. I still got an athletic scholarship to a major university (I was just a journeyman but I had fun) , but it sure wasn't in baseball. Sometimes you have got to make adjustments. Bobby Mercer or Micky Mantle (I know I am dating myself here) aside, most of us have to make a continuing series of adjustments in order to succeed. That is where businessmen and investors are right now - at the cusp of an important decision to make of one of those life altering adjustments.
I doubt this is THE BIG ONE. Oil prices will give and take up and down on their way higher - but the writing is on the wall, so to speak. All of the B.S. Wall Street is feeding 45 year old businessmen about "Retirement"!! What a laugh!! By the time this age group arrives at the age where they might need their money the U.S. currency will have devalued another 75% to 90% from here!! Maybe people are not so dumb. Maybe THAT is why we have a zero savings rate.
But if you are reading this blog you are probably not among the Zero assets crowd. So here is my advice:
1. Spend everything you have on all things you ever wanted to do.
2. Convert most of your financial assets into hard assets.
3. Some combination of the 2.
Mentatt (at) yahoo (dot) com
Posted by The Short Story Man at 6:10 AM