U.S. Obstinacy Means High Oil's Here to Stay

And the only thing that Congress is fired up about -- besides beating up on hapless oil companies that have their assets being expropriated in the big oil drilling areas -- is making sure that the farmers get subsidies, the very cohort that is doing better than any other group of workers in the country.

It's pathetic.

I know it's a bubble. You know it's a bubble. We know oil went up too fast.

But we also know that there are no new finds beyond Brazil, and Brazil has made it so if there is a new find, you can't drill it because the rigs are almost all leased by Petrobras (PBR Quote - Cramer on PBR - Stock Picks). Can't find it; can't drill it.

Unless you are in America, where you aren't even allowed to look for it where it most likely is.

I think oil can come down. But I think oil is an "up stock" and the decline will be a buyable pullback and will remain that way until we either

1. find big, easy-to-drill fields, which I think is an impossibility, or
2. use less so the inventories build.

As of yesterday, despite the higher prices at the pump, that's not happening.

My take: Get used to it. Invest as if oil's going to be north of $100 for some time.

Otherwise you will underperform.

Random musings: I had a disconcerting visit to Dick's (DKS Quote - Cramer on DKS - Stock Picks) where nobody knew what the prices were of the things I wanted to buy. Talk about an anecdotal tell of a disaster! In reality, you could tell that discretionary sports are going to be crushed because BJ's (BJ Quote - Cramer on BJ - Stock Picks) said that sporting equipment was one of the weakest areas. It's worth listening to that conference call to show what people are cutting back on.

At the time of publication, Cramer was long Foster Wheeler.

« Previous Page

1 2

Next Page »