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Investing in Oil can be bad for your Health.

We have all heard the adage, Buy Low Sell High. After listening to Ben Bernanke and President Bush, their sights are clearly on doing whatever it takes to lower the price of oil before wage expectations and all other goods and services go up to offset the embedded cost of higher oil prices.

President Bush is lifting a ban to increase drilling off the U.S. coast. He is pushing the Saudis to increase production, whether they can or not is another discussion. Couple these two things with the end of summer around the corner and the potential for slower growth in China after the Olympics are over and you could see oil drop in the short to mid term even though all long term trends point to higher oil prices.

Dr. Jeremy Siegel, a well respected economist and Wharton professor, indicated in some remarks today that getting the price of oil to $100 per barrel would definitely help reduce inflationary pressures, and stimulate demand in other areas.

The Fed is caught between a rock and a hard place. Inflationary pressures are such that they cant lower rates further and raising rates will hurt the markets even further and hammer a consumer that has already been beaten down.

With so few options for the Fed and the President to look at, they along with others are setting their sights on lowering oil prices sooner rather than later. What are your thoughts? Can the US pressure oil prices lower to help stimulate the economy?


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