Toro

I agree with the tone of your post. However, the US dollar has been rising against the Euro recently as interest rates are lower in Europe, growth is slower and there are questions about whether the Euro can survive. But I think you are dead on about the housing bubble and the implied excess liquidity in the financial system which has pushed up asset markets everywhere in the world. I think the imbalances in the global economy have put the economy at risk. The Fed is trying to mop up the liquidity, but they got us into this mess, and they may be too late. Commodities will crack when demand slows, as it invariably will, but we are in a long-term bull market for commodities because of tight supply and demand from China.

Its hard to say, Mirror. We know that at current inventory levels, over the past 20 or so years, oil has averaged around $20. From 1980-2000, oil supply grew around 2% per year, while demand has been grew 1.5% or so a year. However, because of China, global oil demand has been running at 3.5% since 2001. That may be slowing though as oil demand from China has been falling this year. Thus hedge funds and commodity funds may keeping up prices. But if that's so, then its a very recent phenomona. Usually when speculators take over a commodity, that's a good time to be leaving the market, any market, because speculators always lose interest eventually.

It depends what you are deregulating, how you are deregulating and the structure of the market. Deregulation in the British power market was successful for the consumer but lousy for investors because there was an overabundance of generational capacity. It failed in California because it wasn't really deregulation. That's not saying true deregulation would have worked in California, but companies, for example, could not enter long-term power contracts in some markets. In Texas, deregulation has been good for consumers. As for water, people like to point to a few examples of deregulation not working, but the main reason why private companies are invited into countries is because the countries do not have the capital to upgrade their own facilities. So the option is higher water prices, but at least there's water, as opposed to no water at all. People like to point to power and water as examples of deregulation, but people forget the 1970s and 1980s when there was tremendous deregulation occcuring in a number of industries which has been enormously beneficial for the economy as a whole. Airlines is an example. Another is natural gas, which was regulated in, I think, 1991. Gas used to be burned off at the tip because it didn't make sense to use it as an energy source. Now it is becoming more ubiquitous. Generally, de-regulation is a good thing because it sends market signals to those areas in need of capital investment. However, when it occurs, it must be done so intelligently.

Its the corporate media which is bringing you the corporate news of a corporate kingpin getting nailed in a corporate scandal.

Fer cryin' out loud, lad. The original post doesn't say that explicitly. With all the references to booze and family I thought this was an all-ages event. This is the second time in as many weeks that I've participated in one of your threads, just to be turned away, when I'm making an effort to be supportive. Not a great start to a political career. (Although, the conservative movement in this country has made great strides in alienating as many people as possible in recent years, so maybe you're heading in the *right* direction.) Is there another group in the Niagara Region that caters to old geezers between the ages of 25 and 35? I'd appreciate it if you'd let me know. <{POST_SNAPBACK}> Ah, BHS, you're not familiar with the Young Tories then. The Young Tories have a long history with alcohol. That's why they were so fun. But I don't think that is what Big Blue Machine had in mind though.

Canad has 9 billion barrels of oil equivalent. Including the Tar Sands, Canada has 179 billion. The problem is that oil has to be around $40 to make it work. Its heavy, gooey stuff. Lots of capital has been flowing into northern Alberta lately. My bet is that WTI will cross $40 sometime in the not too distant future and once again, people will question the viability, which will be a mistake IMO.

The NDP will never be elected in Alberta. Simply because deregulation was botched doesn't mean its a bad thing. What it means is that deregulation was botched. There may be some industries that should not be de-regulated. But the experience of most of the world is that most of the time, deregulation works. It must be done intelligently however.

The world is experiencing a global liquidity boom. That's why stocks, bonds, real estate, commodities, and virtually every other asset class has been soaring. That will come to an end though, and maybe doing so now. Canada will continue to benefit from the bull market in commodities for the next decade, even though one can expect some pretty scary declines in commodity prices in this bull market. Demand is increasing because of China and there has been little supply over the past decade or so. The value of the dollar is around 75-80 cents. It was when it hit 62 cents and will be so when it hits 90 cents. Keeping the value of the dollar low is silly because it decreases our wealth in the world. A rising currency long-term is good because its a sign of a healthy economy. An artificially high currency isn't though as it squeezes economic activity.

Canada is benefitting from the Liberals dealing with the deficit back in the 1990s, so in that respect, the Liberals do deserve some credit. However, we are in the midst of a commodities bull market, and that helps Canada more than most countries, including the US.