Posted on 07/10/2008 8:28:07 PM PDT by roostercogburn
Spoken like a true Democrat.
Energy prices will weaken in the face of decreased demand, of which there is evidence. The authors scenario, for which there is no evidence, would cause a crash.
Missing the "Days of Enron" days I see...
I never had anything to do with Enron or anything illegal or unethical.
I've never done anything but make money for the people I've worked for, and over the course of my career it would be counted in the hundreds of millions of dollars.
Congress implements an energy policy from the Carter administration playbook and everyone is surprised that oil has gone up. Now suddenly everyone at FR seems to think that investment professionals are a "parasitic class". And in the meantime you're all chanting the Democratic party line: "Blame the speculator, regulate the markets, wind & solar, wind & solar, wind & solar." These days I feel like I've accidentally logged into DU.
As Wal-Mart goes, so goes the nation, eh? And so goes Beijing as well. I agree with you about consumption -- mostly. However, as my three kids are all adolescents, I don't see the grocery bill being part of any equation that can contract in my immediate vicinity. As the self-employed person in the household, it's convenient for me to go to Sam's Club when no one else is around. I do the shopping, so I feel your pain. Ouch. Do I ever.
No food for Oil! No food for Oil!
Oh Please. You've made money for yourself. And that is evil.
Palpably. Unspeakably. Evil.
I wish some of the people posting here would just take a look at all of the laugh-out loud kookism on display and linked to the site from which this post originates. It's like a zoo without the intelligence or discipline of any zookeepers. 'S what happens when FR allows these Bill O'Reilly "conservatives" in; the jackass actually thinks there's somebody out there setting the price of oil, and ... it's hurting the folks.
It is absolutely amazing how fast grocery prices rising.
Things are getting into a mess and the Democrats playing hardball and refusing to bail bad water while the boat sinks should not set well with the average American.
I wonder if we are being told the whole truth.
The big IndyMac Bank Failure tonight was caused because of stupid management and Senator Charles Schumer sent out a letter asking the Feds to watch the bank.
Once that letter went out customers of the bank started a run withdrawing over 1.3 billion in a few days.
Thanks Chuckie Schumer for all that you do for America, NOT.
History repeats itself.
Dad was just telling me on the phone last night how this is exactly what the Dems did to Hoover in 1932. Many folks don't know that several of the items in the National Recovery Act (which didn't work, but that's anotrher story) were actually proposed by Hoover, but the Dems sat on them to get FDR elected. Dastards.
Excellent summary, of both the movie and the way the market would seem to work in such a “bubble” - I’m hopin’ a lot of greedy traders get hurt bad when this oil bubble, if that’s what it is in part, bursts......
There are a lot of people out there on FR who think I'm ruining their lives just by doing my job. They believe the Democrat BS that the "speculator" is the problem and that's me. They think the market for oil is broken and people like me broke it. They don't understand that based on our current government policy oil is priced exactly where it should be and that the price is just the consensus of hundreds of thousands of people's opinions.
I remember you Fred, and I'm sorry about jumping on you, but it's been a tough couple of weeks around here.
Too many people here watching Bill O'Reilly and too few reading Friedman and Hayek. As I pointed out in another post, if you look around the site from which this particular post originates, you'll find just about every example of kookery you can imagine: 9/11 Conspiracy, Bilderbergers, Illuminati, Oil Speculation, Grain and Potash Speculation, even Water Fluoridation as causes of our current difficulties.
I wonder how many people realize the extent that history is repeating itself now? My Dad was just reminding me on the phone the other night about how the Dems tied up all the economic legislation during the last two years of Hoover's administration to make the economy as awful as possible in the run-up to what would eventually be FDR's victory; a devastating twelve+ years for America from which the worst consequences have not yet been felt -- but will be, soon enough.
Not coincidentally, FDR was fond of blaming "speculators," too. The comedy of the President and his Treasury Secretary sitting down every morning over breakfast to set the price of gold, as if they could, is matched only by its tragedy.
Anyway, not a problem. There are still plenty of people here who understand economics, for all the knuckleheads. Go make some money! That's what I'm doing this afternoon.
FRegards,
FRed.
Global oil supply and demand chart - 1970 to 2007.
http://perotcharts.com/images/energy/energy10.png
Anyone care to validate this chart?
Is peak oil being factored into the price of oil a bit hastily?
Since we have seen the global supply of oil increase every year, in spite of also increasing our global use of oil every year, the very term "peak oil" should be expunged from our lexicon.
Planet Earth is manufacturing more oil each year than it did the year before, and most wells that once ran dry are pumping again at rates similar to their beginnings. Its time for eyes to open, and malthusian tongues to quit flapping.
Amen! (and ditto for groceries, and any other commodity)
The price of oil futures is presently more than double what it was just last December.
Oil industry insiders are claiming the cause for the drop in global oil supply is “peak oil.”
No verifiable evidence of “peak oil” is offered by these oil industry insiders.
Instead, “peak oil” remains unverified by major oil producers AND the fact that oil producers have amped down production, without explanation, in the face of increased demand is offered by these oil industry insiders as evidence of “peak oil.”
Some claim that the price of oil today, as always, is strictly based on the laws of supply and demand.
To wit, I have not seen any chart on global oil supply and demand that verifies this claim.
Instead, Global oil supply and demand, despite the marginal drop in production by major oil producers AND the marginal increase in global demand, remains well within historical deviations - even in 2008.
If global oil supply and demand are within historical norms and “peak oil” is an unconfirmed rumor, then what is a plausible explanation for higher oil prices, especially since 2002?
http://futures.tradingcharts.com/chart/CO/M
http://perotcharts.com/images/energy/energy10.png
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