by yknot 20 Replies latest social current
The speculators got out of oil and into other stuff
The idea earlier in the year was that spectulators were the main cause of driving up gas prices, and now those same speculators are selling for, apparently, greener pastures.
That, coupled with stilla's post regarding supply and demand, and the repair of refineries damaged by Ike, are now creating an excess where once there was a shortage.
Almost every facet of the economy is in violent flux right now, so any predictions are guesses at best.
Don't forget the people who could barely afford their home, until it cost them so much to get to work they couldn't pay the mortgage.
Gas prices hit working working class people. It cost more just to get to work, then food prices started going up too. Most people have nothing left over to buy anything. No sales, no profits.
They should have made the oil companies bail out the stock market.
Maybe because the oil companies just got what they wanted.
http://money.cnn.com/2008/06/23/news/economy/oil_drilling/index.htm?cnn=yes
| Democrats want to know why the oil industry is asking for more drilling rights when it isn't using the leases it already has. |
NEW YORK (CNNMoney.com) -- Oil companies and many lawmakers are pressing to open up more U.S. areas for drilling. But the industry is drilling on just a fraction of areas it already has access to.
Of the 90 million offshore acres the industry has leases to, mostly in the Gulf of Mexico, it is estimated that upwards of 70 million are not producing oil, according to both Democrats and oil-industry sources.
http://www.palmbeachpost.com/news/content/business/epaper/2008/08/03/sunbiz_oilprofits_0803.html
By JOHN PORRETTO
The Associated Press
Sunday, August 03, 2008
The Associated Press
HOUSTON - As giant oil companies like Exxon Mobil and ConocoPhillips reported another round of eye-popping quarterly profits in the last two weeks, one of the questions was this: Where is all that money going?
The companies insist they're trying to find new oil that might help bring down gas prices, but the money they spend on exploration is nothing compared with what they spend on stock buybacks and dividends.
It's good news for shareholders, including mutual funds and retirement plans for millions of Americans, but no help to drivers already making drastic cutbacks to offset the high cost of fuel.
Here in Dakota, we run our cars on corn whiskey. Now we're building a plant to make whiskey from corn cobs. We're importing our oil from Canada with two new pipelines and we're building a new oil refinery that's now in the zoning and permitting stage.
We have no shortages of fuel availability here at all.
Well, I am happy to see it too. To answer though, demand has dropped due to lay offs and less spending. I personally think the fuel problem is a bigger reason for the econimic problem, then the housing problem. Anyway, I want it to go below $2 and until it does ... I am not going to be happy with these amounts we see. As they are still too high.
Floridians are looking forward to Tidal Energy. Gulf Stream can power Florida.
http://www.npr.org/templates/story/story.php?storyId=16713781
The Department of the Interior is working on it!!!!! I'm so excited!!!!!!
No unsightly solar power, no "dirty coal" or "nuclear"
....just hope the fishes aren't hurt. Sushie anyone? LOL.
I bought a new bottle of astro-glide. I am waiting in the doggy position.
At least I could afford some lube.
I bought a new bottle of astro-glide. I am waiting in the doggy position.
At least I could afford some lube.
Trying to think of a response that I can post in good conscience and not get banned, and I got nothing.
the economy doesn't have to "tank":
scenario 1- you are in a foreclosure situation and it's the end of the world. No, it isn't :)
My congress-critter told us in a town meeting that over a million loans have been rearranged to keep people in their houses IF THEY CAN MAKE THE PAYMENTS THEY NOW HAVE. That was back in about March-April.
If you have the guts/balls to stand up and yell at your banker/call your congressman, having heard about it in a timely manner, you can get that ARM rewritten.
The bank doesn't want your property or another black mark on it's record. If you can keep on, keepin' on, like you have been, they will look the other way.
[I've been in foreclosure and 'saved the ranch'; I've been in Bankruptcy Court (as a Creditor) and heard Judges grant "Relief from Stays". Either way, you have at least 90 days to yell. And some of those in Bankruptcy Court said that they had been contacted by the bank already. The Judge
granted the Relief from Stay, anyway, saying that you have plenty of time and that the bank is freer to talk to you without the Stay. If you can't save yourself, having the money, you're uninformed or stupid.]
What happens to the ARM? The banks are being forced to 'internalize' them or face failure. It becomes their problem; but they'll lose a tiny single digit percentage, instead of 100% of a deal this way. The clown that set it up in the first place may be gone and probably nobody will bother him if he isn't. It may be some fly-by-night phone sales boiler room. Lot's of those have shut down already.
Scenario 2- Bailouts
I'll quote what-ah from another post:
There are many instances of the Government bailing out private/public industry at a profit:
Lockheed - 1971
New York City 1975
1982 The "Big Three"
1994 Mexico bail Out
Keep in mind that AIG is getting a bridge loan at 11%. That's practically Hard money.
700 Billion to cover potential write downs? I see profit.
http://www.jehovahs-witness.com/6/165710/2.ashx
If every body is careful and doesn't lose their head, I see the economy coming out of this and going strong again.
As I understand McCain, he wants to keep on doing what's been going on. That includes de-regulation. That needs to be reversed. It seems to me that McCain is confusing DEREGULATING INSTITUTIONS with other laws that impede INDIVIDUAL FREEDOMS. The two are NOT THE SAME. Nothing could be further from the truth.
The de-regulation OF INSTITUTIONS (especially FINANCIAL INSTITUTIONS) that was the darling of the last 2 or 3 decades has led to this and the FINANCIAL INSTITUTES need a harsh dose of regulation restored to them.
The thoughts of the other poster that mentioned the speculators involved in gas prices and moving on to greener pastures may also have a powerful bearing on this.
It's a far cry from INTERFERING WITH INDIVIDUAL FREEDOMS to allowing INSTITUTIONS TO RUN AMUCK WITH IRRESPONSIBILITY.
It's like the old story of the Delphian Oracle: the king goes and asks will I prevail in battle. The oracle answers: a kingdom will be won. He goes out confidently and loses; his kingdom was won by the other side.
Fortunes are being lost; but fortunes will be made at the same time. Business as usual will be going on in a few years, but different people will be in charge.
Mustang
Lots to think about.......but hey this afternoon it dropped another down from $2.85 to $2.76!
