Uncle has picked a side and entered the marketplace that used to be free. There is nothing reasonable about it, Uncle has his thumb DIRECTLY on the commodity roulette wheel--some call it the Plunge Protection Team. What has happened is that the market suspects this and is discounting the selloff in the price of oil all the way back to $70 a barrel, and is scurrying to be oversold because Uncle is buying in the open market, under it all, the way he said he'd buy FRE and FNM mortgage stock above board to the world.
Why? Its's cheaper to bankrupt the hedgies and the commodity brokers than to bouy the entire US real estate business.
What has happened is that the interference in the marketplace, US buying FRE and FNM stock, is what you see on the surface, what you see is the same thing you saw in BSC, which made a profit by shorting against the house? the US government has entered with its big thumb on the oil and commodity markets of the world, and the world is panicing on the other side of the coin that raveled up to $1050 gold. That is now unraveling the way it did from $737 back to $585, only in days back to test the old high at $750.
As Greenspan says, when hard currency is not the law of the land, you have nothing but cartels which are designed to "control" the creditworthiness of worthless fiat.
That's EXACTLY what you're seeing, and no less.
The protection of fiat by the manipulation of commodity prices.
Frankly we don't know where the bottom is, because the printing presses of the US govt are churning. Like a small bullet, it doesn't take a lot of resources to make itself known in our world.
A lot less than bailing out the entire country for the effects of commodity price upswings.