Agree GG and it's also worth noting the the US subprime default belt was at a distance from where the large employment centres are ... i.e. The defaulting subprime breadwinners had to travel longer distances to work. With the price of oil strong and looking bullish there is the same pressure building in the US and in the outskirts of Australian cities (as in 2008). Energy costs have increased across the board, electricity & fuel are accounting for a much larger slice of the average household budget. There was a tipping point in the US at $4 US/gallon of fuel. There is a tipping point here as well but we don't know where that is as yet. The commodities pattern is looking distinctly similar to 2008 pre GFC. I think the US markets have been inflated way beyond where it should have been. It is a concern because if there were a second GFC we would see the US and Europe nosedive much worse than 2008 ... and I think we won't be as isolated this next time. I think we are in the age of increasing financial market oscillation due to overdemand of a peaking oil production.
