I have been predicting for months that the oil price surge was unsustainable and would eventually crush the economy beneath it resulting in a price collapse and stock market crash. This started yesterday with Brent Crude down 15% in 18 hours. The stock markets seem to be plummetting in tandem. It's just like what happened in 2008, except it took 3 months back them for the markets and financial system to "correct" to the summers $147 barrel oil price shock.
When somebody predicts something and gets it so damn right you should probably listen to them. That's exactly what I did (see my countless blog posts from the last few months). I thought this crash wouldn't happen until later this year, mid summer at earliest, but on this point, I was too conservative.
I apologise to anyone who read this blog and thought we had longer, I should have been more dogmatic about my scare story. We're going to see a repeat of 2008 and people will draw the similarities and realise that the real trigger to that crisis was the oil price.
I'll post my thoughts on yesterday's "Super Thursday" elections in the UK later, but for now the market news is much more significant. Watch this space.
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