From Bubble-Blower To Energy Expert, Alan Greenspan Warns “Oil Hasn’t Bottomed Yet”
Having recently explained why the stock market is extremely overvalued (in his own words by Fed-driven multiple expansion alone), Alan Greenspan – seemingly brimming over with the need to remedy his years of lies/mistruths with some uncomfortable truthiness – is now taking on the US Dollar (“it is not from a strong US economy but a weak rest of the world”) and oil prices (America has a massive surplus of oil and there may soon be nowhere to store all of it, “we’ll be lucky if we can get $40 for it.”)
Greenspan told Betty Liu that oil hasn’t hit bottom yet:
“We are at the point now where, at the current rate of fill, we’re going to run out of room [at our domestic facility in Cushing, Oklahoma] by next month. And then the question is — where does the crude go? Because everyone’s forecast as to what was going to happen when prices collapsed was a sharp curtailment in shale oil production. That has not happened. The weekly figures, which are produced by the Energy Information Agency through March the 6, show a continued rise in domestic crude production and it has got no place to go, because we can’t legally export the way we would for most products. We can do a little exporting and Canada, but essentially, we’re bottling up a huge amount of crude oil in the United States.”
On the stronger U.S. dollar, Greenspan said:
“A stronger dollar tends to suppress general domestic price level. But the problem here is that we are not quite certain where the problem on the exchange rate comes from, whether it is a strong U.S. economy, which is a questionable issue, or a weak rest of the world, which is a little more credible.“
…click on the above link to read the rest of the article…
