http://everythingwarrenbuffett.blogspot.com/2009/11/fox-business-video-and-transcript.html

http://everythingwarrenbuffett.blogspot.com/2009/11/fox-business-video-and-transcript.html

http://video.pbs.org/video/1911066955

Crude Drops Below $100 a Barrel

SUSIE GHARIB, NIGHTLY BUSINESS REPORT ANCHOR: Another down day for the stock and commodity markets on renewed worries about the American economic recovery. And you know Tom, investors are also very anxious about tomorrow`s critical report on the job market.

TOM HUDSON, NIGHTLY BUSINESS REPORT ANCHOR: They certainly are. Oil saw a stiff sell-off today Susie, falling below $100 per barrel for the first time since March with some new concerns now about weakening demand. In New York trading, crude futures tumbled 8 percent or about $10 a barrel at $99.80. Looking at precious metals, you can see another sell-off. Gold dropping 2 percent, closing below $1,500 an ounce. Silver declining another 8 percent to $36 an ounce. But you know, it was the U.S. dollar that rallied against major currencies like the euro, Great Britain`s pound and the Canadian dollar on word that interest rates in Europe may not rise as soon as many expected.

GHARIB: Erika Miller has more on today`s market action and whether the years-long commodity rally is over.

ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: There`s an old saying that the cure for high oil prices is high oil prices and it helps explain the big declines in energy and other commodities today. Gasoline has surged 35 percent in a year to almost $4 a gallon nationwide. As a result, economist Constance Hunter says many Americans have no choice but to cut back.

CONSTANCE HUNTER, CHIEF ECONOMIST, ALADDIN CAPITAL HOLDINGS: The fact is commodity prices and specifically oil, were getting high enough that demand was starting to fall back. And when that happens, you see prices fall back.

MILLER: Weak economic data today stoked those fears, especially an unexpected spike in jobless claims. In addition, the European central bank surprised some investors by suggesting it will wait until after June to raise rates. That pushed the dollar up against the euro, which makes commodities quoted in U.S. currency more expensive for foreign buyers. Finally, there may be a less obvious factor influencing the markets. Glencore, a large commodity trading house in Switzerland, is going public and many professional investors are eager for a piece of the action.

HUNTER: There is talk in the market that some portfolio managers are selling commodities so that they can buy into the IPO and that will serve as their commodity allocation.

MILLER: Over the past year, many commodities have surged to record levels. The CRB index of 19 commodities is up over 25 percent in that period, even including the recent plunge. Trader Ray Carbone says it`s natural for investors to question whether the party is over.

RAYMOND CARBONE, OIL & METALS TRADER, PARAMOUNT OPTIONS: It seems that today`s answer is the sidelines is the best place to be and we are seeing people rushing to the exits in the precious metals, in the crude oil and in the commodity asset class.

MILLER: If commodities keep falling, it`s good news for the American economy and the American consumer. After all, if the price of gasoline, clothing and food keep falling, there`s more money to spend on other things. Erika Miller, NIGHTLY BUSINESS REPORT, New York.