reality-based educator

First, oil:

Oct. 29 (Bloomberg) -- Crude oil rose to a record above $92.50 a barrel in New York after Turkey's Foreign Minister said his government is considering ``all options'' including military action to deal with Kurdish rebels operating from Iraq.

...

Crude oil for December delivery rose as much as 68 cents, or 0.7 percent, to an all-time high of $92.66 a barrel in after- hours electronic trading on the New York Mercantile Exchange. It was trading at $92.59 at 8:54 a.m. Singapore time.

Then the dollar:

The weakness in the dollar is helping boost crude-oil prices, said Rowan Menzies, a commodity market analyst at Commodity Warrants Australia Pty in Sydney. The dollar fell to its lowest against the euro on speculation the Federal Reserve will cut interest rates this week as a U.S. housing slump reverberates through the economy.

The dollar dropped to $1.4426 per euro, the weakest since the introduction of the 13-nation common currency in 1999, before trading at $1.4412 as of 8:33 a.m. in Singapore.

``The U.S. dollar is going down at a rate of knots,'' Menzies said. ``You've seen inflation-linked buying across the commodities, in oil, gold, silver and grains.''

It's only going to get worse after Uncle Ben cuts interest rates by 25 or 50 basis points this week.

But the stock market will continue to go up no matter what.

Now that they know Uncle Ben is on their side and ready to bail them out with as many rate cuts as they need, there is no fear on Wall Street.