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Low gas prices signal economic downturn elsewhere
WLS-TV ^ | February 08, 2016 | Laura Thoren

Posted on 02/08/2016 10:41:41 PM PST by george76

Gas prices in Chicago are still falling, but the price at the pump is having a negative impact on the economy.

...

as the cost to fill up your tank goes down, could this also be a sign -- the economy is tanking? Commodities trader Scott Shellady thinks so.

"It's bad for everybody. We are going to lose one-fifth of the jobs we created in 2008," said Shellady.

And he doesn't expect a market rebound anytime soon. So if you were hoping to cash in your 401K or IRA and retire in the next year, Shellady says, rethink your plans.

"The stock market is going to take a long time to recover. We need something new to boost the economy," Shellady said.

(Excerpt) Read more at abc7chicago.com ...


TOPICS: Business/Economy; Extended News; News/Current Events; US: Illinois; US: Maine; US: New York; US: North Dakota; US: Texas
KEYWORDS: coal; economy; gas; gasprices; jobs; oil; waroncoal
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To: george76

Notice I’m not arguing with you.


21 posted on 02/08/2016 11:25:12 PM PST by SpaceBar
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To: r_barton

...and we have our special summer blend that shrinks supply.


22 posted on 02/08/2016 11:27:30 PM PST by gunsequalfreedom
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To: SpaceBar
Hong Kong is a little island state, previously British, now Chinese. They have no oil, mines, or timber. Yet they have a thriving economy. Why?

Raw capitalism.

23 posted on 02/08/2016 11:28:12 PM PST by gunsequalfreedom
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; cardinal4; ColdOne; ...
Commodities trader Scott Shellady thinks so.
Apropos of nothing, barnacles see barnacle removal as a threat to the boat.
24 posted on 02/08/2016 11:30:15 PM PST by SunkenCiv (Here's to the day the forensics people scrape what's left of Putin off the ceiling of his limo.)
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To: SpaceBar

Socialism? Where’s my free prize?


25 posted on 02/08/2016 11:31:56 PM PST by Paladin2 (w)
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To: Paladin2

Hong Kong is more capitalistic than the United States.


26 posted on 02/08/2016 11:39:24 PM PST by SpaceBar
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To: george76

Anyone know about the U.S. dollar and the peril it is in?


27 posted on 02/08/2016 11:54:57 PM PST by jonrick46 (The Left has a mental disorder: A totalitarian mindset..)
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To: SpaceBar

banking or they serve as a shipping point for international trade or both.


28 posted on 02/08/2016 11:56:34 PM PST by txnativegop (Tired of liberals, even a few in my own family.)
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To: george76

Income not spent on gasoline should be available for something else. What besides obamacare is sucking up that money?


29 posted on 02/09/2016 12:02:30 AM PST by clearcarbon
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To: george76
In one of the most ironic scenarios imaginable, the Obama economy has been propped up by the fracking revolution in the United States

Now the Saudis have decided to crash the fracking revolution by crashing the price of oi to drive competitors out of business, just like they did last time around.

That is going to really hurt the only performing segment of our economy.

30 posted on 02/09/2016 12:40:20 AM PST by rdcbn ("If what has happened here is not treason, it is its first cousin." Zell Miller)
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>> the [falling] price at the pump is having a negative impact on the economy

Total BS. The only idiots that suffer are those playing petroleum poker. I’ll take the $100 I save each month and spend it locally.


31 posted on 02/09/2016 1:02:06 AM PST by Gene Eric (Don't be a statist!)
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To: clearcarbon
What besides obamacare is sucking up that money?

Debt.

32 posted on 02/09/2016 1:08:32 AM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
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To: Gene Eric

If you really believe the only ones hurt are those “playing petroleum poker”, you really don’t understand how the oil industry or the economy work.


33 posted on 02/09/2016 1:11:04 AM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
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To: george76
Gee.. I remember some time back when they said continued HIGH gas prices would definitely cause a slowing and a downturn of the economy.

Now LOWER prices produce the SAME result?

34 posted on 02/09/2016 1:36:32 AM PST by VideoDoctor
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To: Smokin' Joe

I’m a capitalist 35 years in. I’m quite familiar with the nature of economy. Now share your wisdom concerning the economic downside of “petroleum poker.”


35 posted on 02/09/2016 1:48:42 AM PST by Gene Eric (Don't be a statist!)
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To: Paladin2
Socialism? Where's my free prize?

/facepalm

36 posted on 02/09/2016 2:06:22 AM PST by 1rudeboy
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To: r_barton

hence 0 and wish to add $10 per barrel- ostensibly to provide funds to cleanup environment- any of the money actually gets to environment I will be shocked - shocked I tell you


37 posted on 02/09/2016 2:08:48 AM PST by Nailbiter
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To: Gene Eric
Shut down 1 oil rig. You lose 40 jobs immediately, but the supplies and equipment used to keep that rig running, from drilling fluid components (various from mines to chemical plants, plus the rail and truck freight distribution systems), to drill pipe and steel well casing (Steel industry, trucking, machinists), to vac trucks, to fuel haulers (vehicles, tires, parts), front end loaders, other earthmoving equipment to build the drilling location and road, gravel suppliers, the people who build cattle guards, make the barbed wire for perimeter fencing, make the fenceposts, make the hoses, belts, air valves, shaker screens, pump parts, etc...

It goes far beyond an oil rig. There is a host of equipment even to site housing and all that involves that isn't built, isn't replaced, isn't sold, isn't made, that hits industries all over the country. You see money going to the oilfield, but the 7-10 million it costs to drill and complete a well goes far and wide.

Cut the rig count by (here) 75% and multiply the above by 150, in this area alone.

That 7-10 million per rig per well can be multiplied by 15-20 depending on the rig--money which does not enter the economy.

All those guys who were doing that wide variety of specialty jobs required transportation, so those company trucks won't be made, either. (How many trucks? Halliburton (just one oilfield service company), is rumored have more vehicles than the US Army). The semi trucks won't be built to haul the materials and equipment, they won't need new tires once every year to 18 months.

Their wives won't have the paychecks to spend on everything from furniture to cars, appliances, or so many of the odds and ends women spend money on when feathering their nest. The guys who run the pizza joint won't sell as many pizzas, the toys won't be bought (grownup toys, the kids will still get toys, just not as elaborate or expensive).

You see a rock in a pond. You are ignoring the ripples, which go far and wide.

You will save $100 a month. I am happy for you. Like many who worked ourselves out of a job, I hope you spend your newfound wealth wisely, all $1200/year of it. Please don't spend it on foreign made crap.

38 posted on 02/09/2016 2:10:50 AM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
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To: Smokin' Joe

Are you equating production and inventory with trade speculation?


39 posted on 02/09/2016 2:13:50 AM PST by Gene Eric (Don't be a statist!)
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To: george76

I’m not buying into this. Lower fuel prices affect shipping, trucking, and airline costs. Also utilities pay less for natural gas. This in turn lowers the cost of fertilizers for the farming sector. The market will adjust itself accordingly. Enough doom and gloom.


40 posted on 02/09/2016 2:27:34 AM PST by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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