Once nearly everyone is convinced that the rise in prices has some real economic foundation after all, and not before, the whole thing goes pop. The pattern repeats over and over. A parallel suggests itself. When even the people who were worried about $40 oil have stopped worrying about $100 oil, it may be time to panic.
OK, accept the logic there. But the implication of it might be a little different. Instead of it meaning that $100 oil will in fact be a problem, doesn\’t it mean that, given that everyone does now say that there are real economic foundations to the high price of oil, that said price is about to collapse?
We are, after all, rumoured to be about to enter a global recession…..