Has anyone noticed how the Dow and Nymex crude futures are moving in lockstep?

[GliderGuider]

The Dow is up 100 points, and front month contracts are trading over $73.00.

What happens if the Dow tries to go back to 13,000?

:popcorn:

[safeinOhio]

1. Five dollar gas will bring it down, time to

nationalize big oil.
We just found out capitalism does not work. Car companies proved it. The only market based companies, other than FoMoCo, failed. Companies that are regulated and are based countries with government health care have won. A China based company, run by that gov. just bought Hummer. Planned economies that have taxed gas up to $6.00 a gallon produced small gas saving cars. Companies that are strictly regulated on quality and safety in Germany and Japan are what people want. Not whim of the market American cars. Companies that aren't burdened with health cost beat us every time. Planed economies work, market driven don't, time to wake up and smell the coffee.

[vincna]

5. The government couldn't deliver the mail on time...

and you want them in charge of producing our oil? I can't think of a single thing the government is good at, so thanks, but I'd rather have private industry in charge of that (and most other things for that matter).

[NickB79]

6. Yeah, privatization has worked out so well for the US

Would you like to have a privatized police force? Privatized fire dept? Privatized military? Oh wait, we had that already, called Blackwater. That worked out just great :sarcasm:

[vincna]

8. The question is who would do a better job

In general, when a government does something, the result is less efficient and more expensive than when it's done in a competitive environment by private industry. Sorry, but I've spent time in a number of countries and that's what I've seen. Our government is no exception. I wouldn't want a private military or a private poice force, but not because the government is particular good at running them. The fire department? Maybe.

[IrateCitizen]

10. This statement is pure horseshit.

I will readily concede that markets of exchange are very efficient at delivering certain goods and services. However, your characterization of that trend as an absolute truth is naive and best and deliberately misleading at worst.

For example, let's look at health care. Here in the US we spend over TWICE per person what other industrialized nations spend, and by almost every measurable health statistic our overall health is WORSE. The reason is that we have a system in which insurance companies skim 20% off the top for providing no real service of value besides shuffling money from one hand to the other, combined with the fact that the profit motive encourages those companies to only insure HEALTHY people while denying coverage (or making it outrageously expensive) to those with any kind of health problems.

Furthermore, if things are so poorly run in those other countries and so well-run here, then why were those bastions of socialism like Denmark, Holland, Norway and Sweden in the top 10 of "world's happiest countries" while the US languished somewhere down around China?

My point is, that if you want to pass off such stereotypical overgeneralizations as truth, you'd better come prepared with some real examples to bolster your assertion and be prepared to be challenged on them. Simply saying you believe something does not make it fact, despite how our media's reliance on "pundits" and "commentators" portrays it as such.

[madokie]

9. I think you may be at the wrong place then

just sayin'

[IrateCitizen]

11. Planned economies don't work all that great, either.

I sincerely doubt that anyone who lived in the former USSR or any other completely planned economy would agree with your assertion.

At least during the age of industrialization, the model that has proved to work best is a mixed economy in which the government runs most basic services upon which most people depend (such as health care) and maintains a viable safety net, while private businesses compete to provide other products and services. In this vein, although many on the right like to portray countries like Sweden, Norway and Denmark as "socialist," the reality is that they do an excellent job of mixing the better elements of capitalism and socialism -- while we in the US remain caught in the ideological trap of allowing anything even resembling socialism to be instantly demonized and therefore discounted.

[DJ13]

2. Yeah, I noticed

Logic should dictate that in a consumer led recession like were in escalating commodity prices are the absolute WORST thing to have happen, yet the idiots on the trading floor of the NYSE can never see anything past the immediate pump for profits so they rally at the wrong time.

[sharesunited]

3. Gold is up too. Mulitple asset classes undergoing re-flation.

It's an inverse dollar trade at the moment.

[pscot]

4. Gentlemen, place your bets.

If oil follows the Dow to 13000 you might want to be short.

[excess_3]

7. GM was kicked out of the DJIA .n/t

[Javaman]

12. Ever notice how the US dollar is based on oil? hence the term: Petrodollar?

sheesh.