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Oil customers join bailout line
Waterbury Republican-American ^ | November 13, 2008 | Editorial

Posted on 11/13/2008 8:13:52 AM PST by Graybeard58

In July, when heating oil was approaching $5 a gallon and the so-called experts were saying crude was headed to $200 and beyond, millions of homeowners were flipping coins. Heads, they'd commit to pay $4.50 to $4.75 a gallon for heating oil this winter; tails, they'd gamble it wouldn't going to $6 as predicted.

In Connecticut, heads came up about 200,000 times. And as soon as those homeowners signed contracts with their suppliers, crude prices crashed 60 percent in less than four months.

Today, heating oil can be had for as little as $2.40, c.o.d. As awful as those contracts are, they were signed by willing sellers and willing buyers. Legally binding contracts are fundamental if we are to have faith in our economy and the rule of law.

Heating-oil contracts have an excellent track record. In the last 20 years, for example, customers of Wesson Oil of Waterbury who signed oil contracts saved money in every year but two, including one in which they broke even. Last winter, when the average retail price was $3.31, those who reserved 700 gallons saved about $500.

The Independent Connecticut Petroleum Association and eight other energy associations want Treasury Secretary Henry Paulson to redirect some of the $700 billion allocated to ease the credit crisis to allow them and their customers to get out of their contracts.

Their hearts may be in the right place, but the feds already have bailed out the lending, financial and insurance industries.

Congress is poised to spend billions more to rescue borrowers who through stupidity or duplicity got mortgages they couldn't afford.

The auto industry got $25 billion and this week was back in Washington for $25 billion more. Spendthrift states are asking for upward of $30 billion.

The list goes on. The retail, construction, electronics and tourism industries are reeling. The service sector is shedding jobs left and right. Should the feds bail them out, too? Where are they getting the money? Between deficits, long-term debt and unfunded entitlement liabilities, they (present and future taxpayers) are in hock for nearly $100 trillion.

Comparatively speaking, no person or company is in worse financial shape than the government, yet pain-averse Americans continue to go to the government for handouts or bailouts to indemnify their mistakes.

We don't doubt that heating-oil retailers and customers would love to get out of their costly contracts. But what about investors who bought stock in AIG this year for $62 a share, people who three years ago purchased flat-screen TVs for twice what they're selling for today, and millions of Americans who suffer buyer's remorse every day?

Where does it end?


TOPICS: Business/Economy; Editorial
KEYWORDS: bailouts; contracts; energy; iwantadoover; massstupidity; revisionisthistory
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1 posted on 11/13/2008 8:13:52 AM PST by Graybeard58
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To: Texas Federalist; raybbr; libertarian27; piytar; norton; ConservativeMind; Lurker; Mr.Smorch; ...

Ping to a Republican-American Editorial.

If you want on or off this list, let me know.


2 posted on 11/13/2008 8:15:21 AM PST by Graybeard58
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To: Graybeard58

I was waiting for this.


3 posted on 11/13/2008 8:15:56 AM PST by neodad (USS Vincennes (CG 49) "Freedom's Fortress")
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To: Graybeard58

How many of these people voted for Obama? We have four times the Saudis oil reserves in the lower 48 in shale oil, coal diesel and ND oil. Democrats have blocked any access because most of it is on federal land. Let these people in CT eat cake.


4 posted on 11/13/2008 8:16:52 AM PST by Frantzie
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To: Graybeard58

Am I the only person NOT currently in a bailout line?


5 posted on 11/13/2008 8:18:22 AM PST by Red in Blue PA (Little known fact: Barack Obama translated into Kenyan means "Jimmy Carter")
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To: Red in Blue PA

I would like to form a new Tax Payer Union (TPU for short) and we need a bailout


6 posted on 11/13/2008 8:20:14 AM PST by 4rcane
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To: Graybeard58

I gambled poorly and paid a ridiculous amount for propane in August because in the fall it turns down hard.

Now I regret that decision, but I can’t see into the future.

Wonder when I’ll get my check for my oil!


7 posted on 11/13/2008 8:20:26 AM PST by autumnraine (Churchill: " we shall fight in the fields and in the streets, we shall never surrender")
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To: Red in Blue PA

I am not in line either. I think that makes a total of 2 of us in PA.


8 posted on 11/13/2008 8:20:29 AM PST by ikka (Brother, you asked for it!)
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To: Red in Blue PA

Better get in line now, that way when they come up with something you qualify for, you are already in line.

Get in one of the existing lines. After all, the government demanded this money under one pretense and changed after the ink was dry.


9 posted on 11/13/2008 8:21:11 AM PST by weegee (Global Warming Change? Fight Global Socialist CHANGE.)
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To: 4rcane

In the future, salaries will be called “worker contributions” and your net pay will be called “change”


10 posted on 11/13/2008 8:23:28 AM PST by A_Tradition_Continues (formerly known as Politicalwit ...05/28/98...Ain't no Newbie!)
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To: autumnraine
I gambled poorly and paid a ridiculous amount for propane in August

Me too....but fortunately it was only to fill my barbecue's tank.

11 posted on 11/13/2008 8:24:03 AM PST by ErnBatavia (Cuba got "Change"...in 1959)
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To: Graybeard58

If you assume the price was manipulated, then it may be grounds to give some relief.


12 posted on 11/13/2008 8:24:49 AM PST by babygene (It seems that stupidity is the most abundant element in the universe)
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To: ikka

Count me as three.


13 posted on 11/13/2008 8:24:52 AM PST by Virginia Ridgerunner (Sarah Palin is a smart missile aimed at the heart of the left!)
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To: weegee

Don’t forget to hurry up and wait in that big, long line.


14 posted on 11/13/2008 8:26:45 AM PST by LuxMaker (The Constitution is a mere thing of wax in the hands of the judiciary, Thomas J 1819)
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To: ErnBatavia

I am buying premium gasoline now, but before the depressed prices I was buying regular.


15 posted on 11/13/2008 8:27:47 AM PST by LuxMaker (The Constitution is a mere thing of wax in the hands of the judiciary, Thomas J 1819)
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To: Graybeard58
Heads, they'd commit to pay $4.50 to $4.75 a gallon for heating oil this winter; tails, they'd gamble it wouldn't going to $6 as predicted.

These bailouts are a no win situation. Heads we bailout the customers, tails we bailout the supplier.

16 posted on 11/13/2008 8:28:12 AM PST by Between the Lines (I am very cognizant of my fallibility, sinfulness, and other limitations.)
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To: Graybeard58

My heating oil company let me switch contracts for the same $250.00 they would have charged me to sign up for the price cap plan to begin with. They understand, heck they own homes, too.

I have a quote for 3800 for a Quadrafire pellet stove fireplace insert that I am interested in getting, however, they are now backordered until January and the pellets are getting harder to find.


17 posted on 11/13/2008 8:28:26 AM PST by SueRae
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To: Virginia Ridgerunner
The Guy on Fox Business " Capitalist Pig" when Intel said they would be off a billion dollars in revenues this 1/4

He said they shpuld say we are cutting employees unless we get a billion from Paulsen. Then he said Intel isn't a growth company anymore anyway.

When pressed what is now he said whiskey.

Then said nothing since the bailout.

18 posted on 11/13/2008 8:30:34 AM PST by scooby321 (Cai)
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To: Frantzie

How many of these people voted for Obama? We have four times the Saudis oil reserves in the lower 48 in shale oil, coal diesel and ND oil. Democrats have blocked any access because most of it is on federal land. Let these people in CT eat cake.
::::::::::::
The treason of the radical far left comes home. Yes, let these dolts eat it -— and maybe a freezing winter might sober up their American history and patriotism.


19 posted on 11/13/2008 8:31:18 AM PST by EagleUSA
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To: Graybeard58

What the hell? And, Congress thinks they can appease us middle class by giving us a measly $600-$1200 incentive check?


20 posted on 11/13/2008 8:32:17 AM PST by beachn4fun (DemocRATS in Congress gone wild!)
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