Monday, June 16, 2008

And a Few Anecdotal Warnings

Panic Image Courtesy Panic Disorder

Something is going to give as the emotional tension continues to ratchet up and up. I think we can make it to roughly October before the slings and arrows of reality penetrate the Xanax fog that a lot of the opinion leaders in this country live in...


Peak Oil: Saudis May Be Strapped for Oil, Close to Full Capacity

Saudi Arabia's pledge to boost oil production by 500,000 barrels per day may not be achievable, a source close to the Saudi oil industry told CNBC.com...

Hollowing Out Mexico: Tough Habit to Break

...Such talk [of drug runners as heroes] is increasingly common throughout Mexico today, from prisons to mountainside towns, as the country wages a ferocious military campaign against powerful drug cartels that make an estimated $13 billion a year and control swaths of national territory. On one side is the president, the military, the law; on the other, the drugs, the violence, but also the stuff of legends—the supposed Robin Hoods who steal from the rich and give to the poor, the bad boys for whom rules don't apply...

Ag Shock: Grains close sharply higher and finish with enormous weekly gain

...Last night and today rains continued to sweep across many parts of the Midwest only adding to further problems. Farmers, elevators and some end-users look to be buying back some of their hedges. We could be seeing some farmer buying as they declare prevented planting and in turn need to buy back their hedges. The market has reached a tipping point and now is in full panic. The weather has remained too bad for too long and now a smaller than expected crop is inevitable. We are just starting the growing season, but the market needs to anticipate the worst. We could see the market continue to rally heading into the pollination window and see where to go for there. It feels however, like the market is going to factor in the worst-case scenario before we get too much further into the growing season...

Delusional Reporting: Are People Smarter than Media Pundits? Yes; Something Is Deeply Amiss

...Here on Planet Earth, a moribund, easily manipulated Mainstream Media is waking up to trends which have been in place for years: to wit, Peak Oil, the Housing Bubble Bust, fraud, insane risk and mismanagement in investment banking and lending, the risks of derivatives, the commercial real estate market's demise, local governments heading for bankruptcy, the collapse of the dollar and the resulting rise in inflation and the cost of imports--I could go on, but you already know all the profoundly important factors Easterbrook ignored/chose to gloss over...

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