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<blockquote data-quote="SunW" data-source="post: 900878" data-attributes="member: 5304">A lot of the discussion here about expectations is misguided, as it assumes that these expectations can be fulfilled.&nbsp; Suppose that these expectations are limited by previous expectations that had high use of leverage?&nbsp; It doesn't matter what someone expects if they owe trillions in debt - they have to first get rid of the debt (bankruptcy or payoff) before their expectations of what's next can be fulfilled.Five years ago the expectations were hyperinflation and everyone rushed into commodities, especially precious metals, some of whom were borrowing with 10+ leverage.&nbsp; Five years later, those people are getting hammered.&nbsp; It simply doesn't matter what's next for these people; they are eating their expectations today from five years ago.Why no one sees this is beyond me, but this explains why it's possible (not guaranteed though) that oil and other commodities could still go lower in price.</blockquote>

[QUOTE="SunW, post: 900878, member: 5304"] A lot of the discussion here about expectations is misguided, as it assumes that these expectations can be fulfilled. Suppose that these expectations are limited by previous expectations that had high use of leverage? It doesn't matter what someone expects if they owe trillions in debt - they have to first get rid of the debt (bankruptcy or payoff) before their expectations of what's next can be fulfilled. Five years ago the expectations were hyperinflation and everyone rushed into commodities, especially precious metals, some of whom were borrowing with 10+ leverage. Five years later, those people are getting hammered. It simply doesn't matter [i]what's next[/i] for these people; they are eating their expectations today from five years ago. Why no one sees this is beyond me, but this explains why it's possible (not guaranteed though) that oil and other commodities could still go lower in price. [/QUOTE]

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