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Leigh Baldwin & Co.

112 Albany Street, Cazenovia, NY 13035 | Phone: (315) 655-2964 Toll Free: 1-800-659-8044

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Diamonds and Dogs

Slippery Oil, Slippery Politicians

Slippery Oil, Slippery Politicians

As the days wind down to the end of QE2, or the governments' desperate attempt to stabilize the economy by keeping rates low, a new easing tactic may have been born. Last week the US and other developed nations agreed to release 60 million barrels from the Strategic Oil Reserves around the world, with the US contributing 30 million barrels. With no ammo left to keep rates low, the powers to be feel that bringing oil prices lower by adding to the supply, will ignite the economy and also keep inflation low. Here is the burn though, in less than a week, oil prices are higher than when the announcement was made. The idea that 60 million barrels of crude, or less than one days' world usage, would keep prices low is symbolic at best. The threat of further government intervention into the capitalist markets might keep prices muted, but ultimately supply and demand rules the day. History shows that politicians do more harm to economies than good.

Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.