Jim Cramer
Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- the endless oil lies,
- Lehman, and
- the new rules of the hedge fund game.
See Through the Oil Lies
Originally published on Monday, June 16, at 8:59 a.m. No wonder there is so much disinformation about the oil markets, which are now, universally, supposed to go down. We have the trifecta of lies on display today in an article from The Wall Street Journal titled "Saudis May Pump More Oil, Discount It to Refineries." I am going to quote the whole chimerical paragraph so there are no illusions about what I think is the world-class dissembling of the Saudis that has been picked up and magnified by the media endlessly:One thing that nearly all sides agree on: the market isn't hankering for additional oil. Saudi officials have insisted loudly for months, most recently on Friday, that more oil wasn't the answer. Instead they have blamed soaring prices on the falling dollar, U.S. interest-rate policy and the increasing involvement of big investment funds in the commodities markets.OK, let's take these lies one at a time. "One thing that nearly all sides agree on -no hankering?" Here we go with another Saturday Night Live line. In fact, the one thing all can agree on is we need more oil to offset and bring down the spot price and the futures price. If there were more oil that could easily be brought to market, the speculators -- including the institutions, because they are not users -- would be smashed. This market is too big to be cornered. The reason it is so high is that if there were any excess supply, you can bet the Chinese and the Indians would take it.
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