No Escape

From the department of more-bad-news:

Oil prices rebounded on fresh hopes that the global economy could remain robust after unprecedented action taken by a number of key central banks.

The plan to make available billions of dollars worth of loans to cash-strapped banks pushed a barrel of New York light crude up $4 to $94 a barrel.

A US government report showing an unexpected fall in crude stocks and heating oil also lifted supply fears.

Brent crude also hit $94 a barrel after sinking to $88 a barrel last week.

By the end of last week, world oil prices had fallen more than $10 from their November peak on worries that the US economy - the largest oil consumer - was heading toward a recession, induced by a severe housing market slowdown and prolonged turmoil in the financial markets.

But a quarter point cut in US interest rates to 4.25% from 4.5%, delivered by the Federal Reserve after its meeting on Tuesday, persuaded energy traders that the Fed was focused on relieving the pressures facing the US economy and put oil back on the front foot.

I have to laugh at the behaviour of world markets. With a "plan" to bring about economic growth, oil spikes again to the mid 90s. The Fed cuts interest rates a few months ago and the sharemarket booms while the US Dollar collapses. The Fed cuts interest rates the other day and the sharemarket collapses while the US Dollar does nothing.

There's no escape. Once the iceberg hit the Titanic was going to sink. Rearranging deckchairs aint gonna to a thing.