STOCK MARKET WATCH - Tuesday, 17 January 2012

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55. Pigs back at the trough - $4 gas by Memorial Day?

Numerous reports have gas rising to the $4/gal. level perhaps by Memorial Day.
Yet, there is no discernable concern amongst the "experts" as to how devastating this rise will be to the already moribund "recovery".
Equally fascinating is the lack of attention to the inflationary effects that a sharp rise on gas cost could bring.

By now, many Americans have become used to the annual feed bag run by oil/gas bettors: gas surcharges are tacked on by deliverers, food costs rise, spending in other sectors tanks - it's now a ritual as everyone basically waits for the hogs to back off the chow once again.

Add in this year's folly: "global political concerns", and we have the stage set for the 2012 edition of "give us your money or else".

Of course any connection, perceived or otherwise, between oil company profits and "global political concerns" are strictly incidental!