The Emperor's New Clothes

http://seekingalpha.com/article/78440-the-oil-shortage-and-other-fairy-tales

Here's an article that was published on May 22nd, but is still very much a timely topic given oil prices over the past several weeks. The article discusses the effect of media hype (specifically CNBC) on oil prices and the lack of fundamental evidence to substantiate the huge increases. I love the analogy the author uses, comparing the oil hype to the story of "The Emperor's New Clothes". I have included an excerpt below, but think that the full article is definitely worth a read. I sit in front of a tv at work that has CNBC on 24 hours a day and can personally attest to the media hype the article discusses. The fact that their Index ticker at the top of the screen has been flashing "America's Oil Crisis" for the past month and highlights the Oil price in bright orange is definitely not doing anything to appease investors' worries.

"The really sick thing is that we are cast in the role of the people in this version of "The Emperor’s New Clothes." King Oil parades out into the crowd wearing nothing but a very expensive smile while all the court jesters on CNBC ooh and ah at the magnificence of the demand cycle, even though there are no fundamentals there at all! I will continue to play the role of the small boy in the crowd who points and laughs and says "But there’s nothing really there," as I did with housing two years ago, but until you start pointing with me, until the voices of reality drown out the sycophants in the mainstream media. the people of our kingdom will continue to be taxed to pay for the kings’ imaginary outfit, until we expose him for the naked fool that he is."

Enjoy,
Katie