Oil falls to 3 year low.

[Cowgirl]

Originally Posted by Larry Gude

....you make the incorrect assumption that high oil prices caused the global downturn, yes?

Housing killed the US, people stopping paying $2,000 a month mortgages, not an extra $200 a month for gas. Everything else crashed from there; construction, appliances, consumables, imports, etc.

Oil producers merely took the drunks money as they ordered another round for the house. The suffering they could have alleviated is marginal, so, why not take the cash?

I would think that the rising gas, fuel, food, etc prices made it next to impossible for people to pay those mortgages. Combine rising commodity prices with increased layoffs, and people start going into foreclosure.

[Larry Gude (Premo)]

Originally Posted by SamSpade

I'm hoping that as the world's economies shrink and fail, OPEC's ability to manipulate markets will shrivel. They've already cut production once since the downturn, and it had no effect. With consumption down in the U.S. and China, they might find that cutting production might bite them in the ass in the long run. They'll push up prices but get beat in volume and sales by competitors.

...it's happening now. Every time there was a huge spike in oil prices, it is followed by a CRASH. It happened in the 80's and the 90's. March of, I think '98, I was paying $.35 a gallon for heating oil. Right now, it's just under $2. That still SUCKS major azz but it is a damn sight better than $4.

NOW is the time to build in the capacity to manipulate oil prices by being able to modulate our own supply in order to allow for global events in order to keep a steady, consistent price. Open ANWR. Add new wells. Oil as national security.

The petrifying reality for the greens is that by doing more exploration we WILL find vast new oil fields.

[Larry Gude (Premo)]

Originally Posted by Cowgirl

I would think that the rising gas, fuel, food, etc prices made it next to impossible for people to pay those mortgages. Combine rising commodity prices with increased layoffs, and people start going into foreclosure.

...it all contributes, but, if your mortgage jumped $1,000 a month when your trial period or 'balloon' was over, what's a bigger problem, the mortgage or getting to work every day?

The housing bubble bursting is, by far, the primary problem. Oil made it a good bit worse.


Look at it this way; we've spent something like $2 trillion too much since 2004on over priced oil. That would put us in a MUCH better position now had those dollars stayed at home, but, we've made something like $7 trillion in commitments to 'fix' the economy of late. So, there's a comparison; oil can be said to be 2/7ths of the problem.

[Cowgirl]

Originally Posted by Larry Gude

...it all contributes, but, if your mortgage jumped $1,000 a month when your trial period or 'balloon' was over, what's a bigger problem, the mortgage or getting to work every day?

The housing bubble bursting is, by far, the primary problem. Oil made it a good bit worse.

Yeah, I forgot about those pesky ARMs.

[Toxick]

Originally Posted by Cowgirl

Can someone please explain why OPEC would want to cut production to raise prices? Seems to me that the low prices can only HELP these failing economies.

What makes you think that have the slightest interest in helping failing economies?

[desertrat (Premo)]

Originally Posted by Toxick

What makes you think that have the slightest interest in helping failing economies?

Goose and the golden egg?

[chernmax]

Originally Posted by Cowgirl

Can someone please explain why OPEC would want to cut production to raise prices? Seems to me that the low prices can only HELP these failing economies.

Because doing less and making more is all they care about!!!

[desertrat (Premo)]

Originally Posted by Larry Gude

...it all contributes, but, if your mortgage jumped $1,000 a month when your trial period or 'balloon' was over, what's a bigger problem, the mortgage or getting to work every day?

The housing bubble bursting is, by far, the primary problem. Oil made it a good bit worse.


Look at it this way; we've spent something like $2 trillion too much since 2004on over priced oil. That would put us in a MUCH better position now had those dollars stayed at home, but, we've made something like $7 trillion in commitments to 'fix' the economy of late. So, there's a comparison; oil can be said to be 2/7ths of the problem.

Not a thing to do with Greenspan continuously raising interest rates?

Originally Posted by Larry Gude

...OPEC doesn't want to cut production right now for the very reason you cite; they NEED world economies to be doing OK. Besides, they're still making 'windfall' profits at anything over $30.

Yeah but @ $130 you make really obscene profits to further fund Jihadists .... excuse me Madras

[Larry Gude (Premo)]

Originally Posted by desertrat

Goose and the golden egg?

...yup.