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Oil Market being compared to Housing Market

Posted on Monday, June 9, 2008 at 12:04PM by Registered CommenterChicago Real Estate News in | CommentsPost a Comment

I wanted to post an interesting article I read this morning on CNN.com about how an analyst was comparing the boom in oil prices to the boom in housing prices a few years back.  The writer is stating that just as the housing market a few years back saw an over-abundance of builders try to take advantage of the high prices and eventually create an excess of supply that oil companies are going to do the same.  I think this is very optimistic on his part but the point he is trying to make is that with oil prices so high that eventually more and more companies will get into the market to take advantage of this and eventually the supply will be greater than the demand.  This would hopefully lead to an eventual crash in oil prices just as the recent drop in home prices.  Read it for yourself and let me know what you think: http://money.cnn.com/2008/06/06/news/economy/tully_oil_bust.fortune/index.htm?cnn=yes  


Mitch Schuman
Real Living Helios Realty

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