Oil Tops $120

Oil shot up more than $16 today to record the largest single day gain ever. With winter coming (did anyone even notice the autumnal equinox?), it’s not good news to see these prices again.

Difficult to know what’s what right now, but the dollar was pummeled today (understandable), while the Dow was down nearly 400 points. Expect this kind of schizophrenia in the stock market for a while (probably in commodities, too).

Beyond that, whatever form this bailout eventually takes, it is still not going to solve our deep fundamental economic problems. Just to bring a little more gloom to your day, here’s a piece from Albert Bozzo on CNBC about the parallels to the period of Japanese stagflation (and this is likely best case).

I could link to other, even gloomier, articles but I don’t want to ruin your week.

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