Comment by foundZero

Entered on: 12/12/2008 1:31:54 PM

Here we go, perfect example of the "fundamental irrationality" of the markets. Why should oil drop on this news? Is the assumption that if the big 3 fail, people will simply stop driving cars? Or is it the somewhat less preposterous assumption that the big 3 will stop producing over-consumptive cars and therefore market demand will fall?

At the very least, this represent a return to "funadmental irrationality" instead of the controlled, federalized and manipulative irrationality we have at work now.