$200 oil - new low in NDX and SPX

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-------- Original Message --------

Subject:	RE: Jeff Rubin: $200 oil?
Date:	Wed, 20 Apr 2011 15:18:02 -0700
From:	Jas Jain

To: jas_jain
Subject: Jeff Rubin: $200 oil?
Date: Wed, 20 Apr 2011 13:27:07 -0700

$200 oil would be equivalent to US oil consumption as a pct. of today's private GDP of 15-16% (roughly equal to the US gov't fiscal deficit today) and gasoline at $5.50-$5.75/gal.

A rise in the price of gasoline by that much would be a hit to US household spending of a MASSIVE 4-4.25% nominal since '10 (5-6% hit to GDP), which is almost TWICE the hit that occurred in '80-'82 and '08-'09.

 

IOW, the only net incremental growth in the US economy to date is nominal spending for gasoline and oil-related expenditures and gov't spending (20% annualized in Q1), including direct and indirect transfers to households and firms, not the least of which is from war spending.

Yet, the stock market is levitating as if business as usual continues. Amazing . . .

 

It is the same game being played over and over again in the Scam Market. I am loving it because I need to load up on puts. Please, Scam Market god, continue the rally to 1400 in SPX and 2500 in NDX. Bloodsucking by Corporate Crooks of America must continue as along as there is enough blood left. 2010s would make 2000s look like a walk in the park for the eCONomy and for the Scam Market. At least three recessions and multiple new low in NDX and SPX.

Jas

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