MORE PROOF WE'RE IN AN OIL BUBBLE: SPECULATIVE OIL/COMMODITY HEDGE FUNDS INCREASED 20X IN 5 YEARS

WASH POST:

According to Michael Masters of Masters Capital Management, hedge funds and other institutional investors boosted their investments in commodities such as food and crude oil from $13 billion at the end of 2003 to $260 billion as of March 2008.

THIS HAS CAUSED THE BUBBLE:

• THIS INFLOW HAS INFLATED THE PRICE OF OIL.
• TOO MUCH MONEY IS CHASING TOO LITTLE OIL.
• NOT TOO LITTLE FOR ACTUAL CONSUMPTION, BUT TOO LITTLE FOR THE HEDGE FUNDS!
• THIS CANNOT BE SUSTAINED.
• THE BUBBLE WILL BURST; OIL WILL CRASH