When Crude Drops, AMR Will Fly

I have been watching in amazement while the price of crude strangles the world's economy at $139/bbl. There have been riots and strikes in Europe as gasoline and diesel approach $10/gal (U.S.). In the third world and developing countries, many people have to decide between driving or eating.

Crude is up 57% since February and doubled in a year. In early June it rose 13% in a single day. I haven't seen something move like this since the solar stocks in November, 2007 or the Nasdaq in March, 2000. But like those former parabolic critters in the rear view mirror, the current commodity speculation in oil being is pawned off as something unique - a "supply/demand" crunch or peak oil (as in the difference from Monday to Tuesday). Yet it looks to me like just one more chapter in the age old myth of "It's different this time".