I have been wondering how much of the rise in oil prices was due to speculation, or recursive market effects. I guess 60 minutes discussed this subject last night - although I missed it, Barry Ritholtz has written a nice response. Here is an excerpt from his great post on the rise and fall of oil:
There’s a lot more, but the bottom line is this: Higher energy prices
were caused many many factors over the past 8 years. Certainly,
speculation played a part at the end of the run — but it always does.
Oil fell more precipitously than it rose, but don’t all markets do
that? Didn’t the S&P just plummet nearly 50% in a year, after a 5
year run?
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