Connacher Oil & Gas Ltd CLLZF

My New Year Preditciton

[Oilisgold]

Oil to stay low for 6-8 months or longer.
Why?

1)   Low oil prices increase disposable incomes to all consumers and businesses.
2)   Less demand world wide. That is why cutbacks will have limited effects by OPEC.
3)   OPEC cut backs will not be honoured as every country needs the cash flow to pay debts and cover losses.
4)   Oil tankers cost a lot for 2M BO and credit to pay for such isn't available at higher prices for oil.
5)   World Leaders will be supporting alternative energy sources.

                    One that is over looked is Permanent Magnetic Motors. I have a few designs on such but can't afford to build the prototypes. Any large investors out there want to joint venture the project? $500,000.00 or more to prototype with a 90% chance of producing an alternative energy generator that is more effective than any other on the market. Might be better to form a Traded Company or reverse takeover one of the delisted companies? Anyone with a delisted company
6) Automakers world wide are repositioning to produce  the hybrid vehicles and will flood the markets in 6-8 months.
 


 7. Small businesses create 90% of employment are hit by new issues such as higher costs on all fronts. Especially banking costs. yes, they are charged 3.5% for consumers using Credit Cards. In small business they used to make on average 10% profit...now they are making 6.5% due to charges and everyone using plastic ( including debit cards with charges to merchants). These instruments of payment are charged where cash and checks can't be charge a fee for transaction. That is why banks are now not issuing checks on accounts. Banking laws changed and profits are invested into insurance and brokerage faciities for higher returns then for loans where returns are limited. thus small business is too risky and not getting loans and credit lines. However, Credit cards are owned by the banks. They charge anywhere for 9% ( if you are licky) all the way up to 28%. Miss a payment and it will be 28%. Yet prime is 3%. In the late 70's it was 28% but prime was 21%. only 7% difference to prime. Now Credit cards gouge and are not regulated properly by government. This is eating disposaable income and preventing spending and purchasing. Yet increasing banks profits and handouts from govenrments aren't dealing with this huge issue.

8)  People have less money to spend due to losses in net worth form losses on the stock market, losses on the value or equity of real eastate and job insecurities. Thus, credit and cash spending will be very depressed.

So i expect a prolonged down turn in the economy.

Oil Prices will remian low for a long time.
Consumers and small businesses are the back bone of the economy and they have been hit the hardest due to Governments not paying attention and protecting them from big money and profiteering.

Happy New Year.