Best Columns: Bursting bubble, Bubble boosting
The deflating energy bubble
“Energy prices are headed lower—really,” says Jim Ostroff in Kiplinger.com. “Look for oil prices to fall about 30% to around $100 per barrel by the end of the year,” and gas prices to “dip to $3.45 a gallon by December.” Why? “Demand is falling,” just like it did in 1979-80, when the last oil bubble deflated. People are buying smaller cars and less gas, and not just in the U.S.—“demand will slacken” in Asia, too, as gas subsidies vanish. Prices won’t collapse like they did in the 1980s. But supply is quietly increasing, the dollar is gradually recovering, and the “speculative froth” is subsiding. We won’t get a “decades-long trough” in prices, “but pricking the commodities bubble will sure feel good.”
Defending the bubble
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Bubbles aren’t all bad, says Chris Farrell in BusinessWeek.com. If anything, we should “heap praise on speculators—and the market bubbles they help create.” And not only should we applaud them, we should limit “the damage from the bust” when “things head south.” Speculators are pioneers, and their bubbles are “capitalism’s way of rapidly transforming an economy.” The “dot-com boom/crash” quickly created the Internet economy. And while “bubble bashers dwell on the bad,” for every crashed Webvan there is a booming Amazon. Today, the run-up in oil is tied to the investment bubble in Asia. When it inevitably bursts, the “stronger economic ties” between developed and emerging economies will remain.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
'The winners and losers of AI may not be where we expect'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
Shingles vaccine cuts dementia risk, study finds
Speed Read Getting vaccinated appears to significantly reduce the chances of developing Alzheimer's and other forms of dementia
By Peter Weber, The Week US Published
-
Judge ends Eric Adams case, Trump leverage
Speed Read Federal corruption charges against New York City Mayor Eric Adams were dismissed, as requested by Trump's Justice Department
By Rafi Schwartz, The Week US Published