A reason oil prices is dropping, is that we can not use the crude we have. Many refineries in the gulf were damaged, so they can not refine as much, meaning they dont buy as much crude. Less demand.
Oil under $100???
- Thread starter jsledder
- Start date
It's all stems from greed. The whitehouse is trying to keep the oil up. Gov allowed creative loans to be made to consumers who didn't qualify. Why is it that almost everything we buy in the U.S is made oversees?
Why is it the govts fault banks made damn dtupid loans to people? Time to start taking the blame on ourselves and on the people who enabled it. The govt isn't putting a gun to the banks head telling them to give the Walmart clerk a home loan for 180k.
Why is it the govts fault banks made damn dtupid loans to people? Time to start taking the blame on ourselves and on the people who enabled it. The govt isn't putting a gun to the banks head telling them to give the Walmart clerk a home loan for 180k.
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Ollie
ACCOUNT CLOSED
We had this discussion last year.
It was pointed out then that the home load mess was the tip of a VERY big ice burg.
The problem is and was that morgage companies did some creative paperwork and got people loans that shouldn't have gotten them.
The banks wanted the money (after all, we were in a boom), so they looked the other way on this.
The economy started to slow down and people couldn't make the ballon payments on their adjustable rate home loans. So they started using credit cards to make up the difference. Now toss in the new law passed in washington that changed the way credit card payments were calculated and the payments in a LOT of cases doubled. When they maxed out their cards they started losing their homes. Unfortunetly, by the time they lost their homes they couldn't make their credit card payments either.
So the banks were hit from both sides. Then toss in the oil surge which slowed the economy even more and now you have a snowball effect. The banks can't make their obligations because they can't collect on the bad home loans and credit card debt.
When the banks start crashing average mom and pop who have played by the rules start getting hammered and now they arn't spending money. If they arn't spending money things arn't getting made which means people are getting laid off.
Now toss into this mess the fact they want to raise the cap on immigration by over 1 million a year and allow the 20 million criminals to stay and you have one heck of huge mess.
It was pointed out then that the home load mess was the tip of a VERY big ice burg.
The problem is and was that morgage companies did some creative paperwork and got people loans that shouldn't have gotten them.
The banks wanted the money (after all, we were in a boom), so they looked the other way on this.
The economy started to slow down and people couldn't make the ballon payments on their adjustable rate home loans. So they started using credit cards to make up the difference. Now toss in the new law passed in washington that changed the way credit card payments were calculated and the payments in a LOT of cases doubled. When they maxed out their cards they started losing their homes. Unfortunetly, by the time they lost their homes they couldn't make their credit card payments either.
So the banks were hit from both sides. Then toss in the oil surge which slowed the economy even more and now you have a snowball effect. The banks can't make their obligations because they can't collect on the bad home loans and credit card debt.
When the banks start crashing average mom and pop who have played by the rules start getting hammered and now they arn't spending money. If they arn't spending money things arn't getting made which means people are getting laid off.
Now toss into this mess the fact they want to raise the cap on immigration by over 1 million a year and allow the 20 million criminals to stay and you have one heck of huge mess.
D
dmkhnr
Well-known member
There in lyes the problem. Most Americans don't know what is good for themselves, hence the 180k loan on a walmart salary. The banks put together creative loans for these people (the money coming from groups of foreign investors) , got them in homes that were too big for their income, or seconds based on the equity in their existing (the second is a sad situation for most, as these people are the ones who are really losing out). Things get a little ruff (Ie: gas, food, clothing, utilities all put combined downward pressure on the consumer), and all of a sudden their little nest egg is being forclosed on.
It is Gov fault because there should have been some sort of regulating, the gov should have been looking out for the best interests of the country because the people are to stupid to take care of themselves.
Now the banks are going under, and the lenders, who, knowing full well of the underlying trouble they were causing will get off without any reprocussions. They are crooks and should be put in prison.
Now what??? So far the faulted banks have been taken over by other corps. The issue of FDIC insured money hasn't been brought up, but obviously if this keeps happening it's inevitiable. And if it does, WE taxpayers will be the ones curing it.
ANYWAY!!!!
Back to the fuel, it was $93 this morning, what did it close at??? Even though the pump price isn't in line with barrel price, it is nice to see a little relief, wouldn't you say???
O
Ollie
ACCOUNT CLOSED
heres a question.
Everyone says the price is based on futures only.
Why is it that shell gas stations jumped 15 - 20 cents a gallon the morning after it was announced that they had shut down a few drilling platforms in the gulf, yet no where else jumped the prices.
And now the shell station prices are coming down.
So, why is it when oil jumped in price the price of gas went up literally the next day, yet when the price of oil goes down it "lags".
Gas should be around 2.90 a gallon right now.
I bet you won't see gas at 3 dollars a gallon till oil is 70.
at 70 a barrel, gas should be around 2.30 - 2.40 a gallon.
Everyone says the price is based on futures only.
Why is it that shell gas stations jumped 15 - 20 cents a gallon the morning after it was announced that they had shut down a few drilling platforms in the gulf, yet no where else jumped the prices.
And now the shell station prices are coming down.
So, why is it when oil jumped in price the price of gas went up literally the next day, yet when the price of oil goes down it "lags".
Gas should be around 2.90 a gallon right now.
I bet you won't see gas at 3 dollars a gallon till oil is 70.
at 70 a barrel, gas should be around 2.30 - 2.40 a gallon.
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I had a pretty interesting conversation with some pretty knowledgeable people who work for a pretty darned big oil company here in the US the last several weeks.
Needless to say I was pretty astonished that one of them told me his company only produces %30 of the crude they refine...
So in other words, the US majors are effected just as much by OPEC and price speculation as the rest of us, in some sense.
I'm sure they aren't griping about the profits, but as I've said before, they're not really using those profits to fund a massive amount of new exploration and technogical innovation ... They're using it to buy their companies back with the anticipation of being private oil companies in the next 10-15 years.
What I was really surprised about was that apparently some of these major companies think Peak Oil is real, and we're in it right now...Hence the drive to become a private (and hence smaller) company again.
I used to think that the margin between supply and demand was what the driving mechanism for allowing all this "speculation" to take place, but apparently I was incorrect with that thought.
Needless to say I was pretty astonished that one of them told me his company only produces %30 of the crude they refine...
So in other words, the US majors are effected just as much by OPEC and price speculation as the rest of us, in some sense.
I'm sure they aren't griping about the profits, but as I've said before, they're not really using those profits to fund a massive amount of new exploration and technogical innovation ... They're using it to buy their companies back with the anticipation of being private oil companies in the next 10-15 years.
What I was really surprised about was that apparently some of these major companies think Peak Oil is real, and we're in it right now...Hence the drive to become a private (and hence smaller) company again.
I used to think that the margin between supply and demand was what the driving mechanism for allowing all this "speculation" to take place, but apparently I was incorrect with that thought.
