Don’t Believe the Hype Regarding Oil Prices Every Investor May Not “Get It”

Just Because Your Intelligent, Doesn’t Mean You Understand Everything

I was surprised to read even smart people like [Princeton economist and New York Times columnist] Paul Krugman say oil couldn't be in a bubble because there was no stockpiling. That to me showed a distinct lack of understanding of what was going on. Companies were, in effect, stockpiling quite aggressively by not extracting oil that was economically viable. That stockpiling in the ground, so to speak, created a speculative bubble that we expected to burst, set off by a downturn in the economy.