OIL BUBBLE?….Is the recent rise in oil prices a speculative bubble? Via Mark Thoma, economist Jim Hamilton tackles that question here. Shorter Hamilton: if you think it’s a bubble, what makes you so sure you know what the price should really be? But read the whole thing for a bit more detail.
UPDATE: Alternate theory: the market is afraid that Obama will win the presidential election and this will send George Bush into a frenzy of military activity. Thus, prices are up.