Thursday, October 16, 2008

OIL $70 CAL $31

The last time oil was at $70, CAL was at $31. The economy was better. The economy will get better. The write downs being taken by banks are from real estate price declines that occurred over the past several years. Crying over these prior losses is crying over spilt milk.

Analyst suggest that China is only going to slow to an 8.5% growth rate. If that is true, air travel demand to China will pick up and the decline in oil prices will slow. The trend in oil prices will remain down. The 36 nuclear power plants under construction will be built regardless of the price of oil. Indeed, the world is quickly approaching proposed plants that would double the amount of nuclear electricity. In London, car purchases were down 8.5% year over year. Train stations all over England are being lengthened to accommodate loading and unloading. Once the stations are built, the public will not be quick to go back to car travel. Fly to London and then take the train or the underground