Gas Price Reversals

On an earlier post I was commenting on a disconnect between oil and gasoline prices. Oil was falling but gasoline was staying up...

Well guess what...? The very opposite is happening now... Take a look

In the last 3 months, gasoline prices have dropped from $3.55 to $3.20  while oil has fluctuated between a low of $75 per barrel to a current $100.

How long does it take to clear oil inventories? Or is it simply noise from day traders?

The cheaper it gets, the less I want it

Great intuitive commentary in the Financial Times yesterday about the effects of really low rates on the banking industry and the economy.

Pimco's Bill Gross argues that low rates could entice less borrowing instead of more.

Good read for students and practitioners