RE:Everything is upside downObscure1 wrote: Oil is up 3.5% and SU is down 1.75%
The Canadian dollar has decoupled from oil which petty much never happens.
Real interest rates are massively negative which is unsustainable as we have seen in the past.
Debt in Canada has doubled in the six years Trudeau has been in power which makes it pretty much impossible to bump interest rates enough to rein in inflation.
Covid dominated the media and shut down and pretty much bankrupted Canada and now nobody is talking about it. Just like that....poof...nothing....out of sight, out of mind....makes you wonder
Buffet was supposedly washed up and it was all tech-tech-tech and now Berkshire is a darling once again and SHOPfor example is down 70% even though SHOP is positioning itelf to go directly after AMZN
Housing prices have completely lost touch with reality.
I have been encouraging my son to buy a house since the housing plunged in the spring of 2017. Last night, my son called me and asked me if I thought he should put an offer in on a house. I asked him if he loved the house and he said no, but that it was ok.
I told my son that I have no clue what prices are going to do in the short term, but that I wouldn't be buying a house now. I said that the current housing prices can't possilbly be sustainable. When interest rates start moving up a half percent per month for a few months to battle inflation, a correction is inevitable. I have built a few homes so I have a pretty good idea what things actually cost and even the temporary inflated price of materials don't come close to justifying housing prices.
The environmentalist zealots worked the media into a froth without thinking about the future and the harsh reality of moving to renewables. Screaming at the top of one's lungs doesn't accomplish anything without a workable alternative plan. Their "solutions" currently cost about 8 times as much as oil and gas and no matter how much money we throw at renewables, they still won't solve our energy needs. Making the transition is bankrupting the world.
Putin? Not touching that!
Biden? Not touching that either!
The only thing that I think I know for sure is that China is going to be the big winner.
Well the sooner someone can figure it all out, let me know.
Upside down is a polite way of saying the world is F*&%^D, at least in it's thinking.
What I have figured out is that they have always wanted cheap energy, thinking that they can grow their economies from cheap energy, mainly O&G. Ocassionally it goes a little haywire only to come back to cheap energy again because they go and drill and supply/demand falls back into balance.
Now I don't know if they decided to get away from O&G because they thought they could start a new industrial revolution (energy wo O&G), or if it was because they knew there were no molecules left (40 years), or some other reason.
Point is even if they got it right and could live wo O&G, it would not be cheap.
So the days of cheap energy are Gone, whether we, they or the empty chair beside me likes it or not.
So what is going to happen. When the world has always thought that they could grow with cheap energy and energy is no longer cheap.
Somethings gotta give. They have to change their thinking.
Or do they want it all to go back to zero and start all over again???Rinse and repeat the pattern every generation....
Food for thought.