Murdoc’s never been really convinced that there’s a big Oil Bubble that will surely burst any day now. There’s no doubt that some wild speculation is helping drive up the price, but simple supply and demand (combined with continued warfare and threats of more in the prime oil zone) accounts for the vast majority of the price increase.
But today I’m questioning my skepticism. Why?
Because Krugman says there’s no Oil Bubble.
Doesn’t that almost guarantee that the Oil Bubble exists and is probably twice as big as anyone thinks?
I wish it were so…