Monday, July 07, 2008

Oil Bubble?

Investors, including pension funds and Wall Street speculators, have sharply increased their commodity allocations since 2003, from $13 billion to $260 billion, The Washington Post reports.

"The increase in commodity prices has been so sharp that some pension managers are worried about a possible crash…. 'It's hard to know which commodities are in a bubble and which aren't,' said Bob Schultze, director of the Virginia Retirement System."

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