It's not ironic at all...you can't buy what ya can't afford.
Ironic that now that America is in a recession, that the price of oil falls. The rise in oil prices of the last 8 years is apart of what caused this economic crisis. Yeah a part of the blame can go to "subprime borrowers" for making mistakes and ultimately getting in over their heads or even the banks for creating the problem. Though if a lot of these bad loans that are causing this mess started before 2001, then we know that gas prices had a big effect on them not being able to pay their payments. When an essential such as gas has went up 3 to 4 times the amount of what consumers are used to paying, those living from paycheck to paycheck can no longer make their payments unless they are also making more money. Not to mention all the other essentials that have raised in price in the last 8 years as a result of this. As consumers we had no way to anticipate such a dramatic rise in prices. I'd like to see the numbers on these mortgages that have been foreclosed on, I'd say a higher percentage than you think started before 2001. It may not be the only cause to this mess, but its a big part of it IMO.
This Time article would have you think oil prices dropping is a bad thing. http://www.time.com/time/business/ar...0.html?cnn=yes
Why? The article assumes America hasn't learned it's lesson.
My take on this is even if gas prices continue to fall, we would be absolutely stupid as a country to go back to old bad habits. Demand has fell 800,000 barrels a day this year compared to last year. It would be more than just a mistake to not go forward with taking steps not only to drill and produce our own oil, but to also keep developing alternatives energy, hybrids and electric cars. We can not continued to be addicted to foreign oil. In the article it said that Iran's budget this year was set to assume oil would trade at $90 dollars a barrel. Modest estimate at the time, though now it looks like they will have to cut spending if the oil drop continues. You want a way go after Iran without going to war, without innocents getting killed then you do it economically. We must do everything possible to keep oil prices low. We must attack this problem at all angles, and we must not get comfortable because prices at the pump are falling.
BTW, Russia would need it to stay at $75 dollars a barrel to keep their spending budget. Like I said, you want to hurt these countries do it through economics. In a way they've did it to us. It's no wonder Iran and Russia want to cut production to keep the price higher huh?
It's not ironic at all...you can't buy what ya can't afford.
...And if you ain't down with that, I got 2 words for ya....
It's ironic to me at least because exactly what I addressed in the next paragraph...that I believe the price of oil, higher gas prices, energy cost is a big part of what's caused this economic mess. It all goes hand in hand.
Though yeah, the American economy has lost $2 trillion dollars in the last week. Where did that money go? No where really, because it never really existed physically to begin with. So what happened? The value of our dollar actually increased. Just another reason for the dramatic fall in oil prices. The dollar is actually the strongest it's been in years because of this. When our government prints money out of thin air, the dollar loses value robbing the American people blind. The opposite of that is happening during this recession, at least in the last week. I'm not saying this is a good thing for America's, not at all but that is what is happening. BTW, my 401k account has lost $2500 dollars this year so far. Kinda depressing, but I surely believe that once this recession is over that money will be made back quickly in the market.
So less demand, economic fears and a stronger dollar IMO is what is leading to the fall in oil prices. Though also remember, the price of oil fell greatly in the months after Bush lifted the ban on offshore drilling. We were heading toward this point anyways until Ike hit and all that mass hysteria happened which drove the price back up for a bit. This recession that has began really is not what has curved demand as of yet, but we will see that too I'm sure.
It did cause the mess...and most folks couldn't afford to buy gas as the price grew...so naturally when the bubble burst world wide, prices went down.
...And if you ain't down with that, I got 2 words for ya....
I was listening to something the other day, not sure if it was tv or radio, saying that the DEMS should want gas prices to stay high! In the past year, people have driven something like 2 billion miles less due to high gas prices. All of that less driving has cut back on greenhouse gases which can only help the environment.
It was a tongue in cheek comment obviously.
Well like I said, we are using 800,000 barrels a day less in 2008 compared to 2007. BTW, oil prices dropped even further today. It's heading on a big time decline, it may bottom out for now at around $60 dollars a barrel. Which would mean gas would be somewhere in the neighborhood of $2.25 to $2.50. Which would be great. Also I read today that Iraq's oil fields will soon be made available and a bidding war will probably ensure over it. Hopefully an American oil company can get their hands on it, we can not let Russia or Iran get a hold of it. Thats for sure.
Iraq to begin first oil bid round in London
By SINAN SALAHEDDIN ? 1 day ago
BAGHDAD (AP) "? Iraq's oil minister will meet Monday in London with representatives of international oil companies for the first round of bidding for new contracts in the country since the U.S.-led invasion in 2003, the minister's spokesman said.
Last April, Iraq chose 35 oil companies out of the 120 that applied to participate in the bidding round to develop six major oil fields and two gas fields.
Topping the list of companies are the world's oil giants: Royal Dutch Shell PLC, BP PLC, ExxonMobil Corp., Chevron Corp. and Total.
Six state-run oil companies were later added to the list and a British company was dropped since it did not submit the required documents.
Iraq sits on more than 115 billion barrels of oil, but decades of wars, U.N. sanctions, violence and sabotage have battered its oil industry.
As security improves, Iraq is trying to bring in foreign companies to help increase crude output from the current 2.5 million barrels a day to 4.5 million barrels a day by the end of 2013.
Ministry spokesman Assem Jihad said the purpose of London's meeting with Oil Minister Hussain al-Shahristani is to present the international oil companies with the forms of the contracts and with data and details for fields being offered.
"In light of these information, the companies will be in a better position to submit their bids which are planned to be approved by next summer," Jihad told The Associated Press.
The ministry will give the companies a six-month timetable from the receipt of data and other details to submit bids for a 20-year contract, another Oil Ministry official said.
The official, who spoke only on condition of anonymity as he was not authorized to publicize information before Monday's meeting, said the ministry plans to announce winners in June 2009.
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Diets17</div><div class="ubbcode-body"> As security improves, Iraq is trying to bring in foreign companies to help increase crude output from the current 2.5 million barrels a day to 4.5 million barrels a day by the end of 2013. </div></div>
Dang it, just when I was starting to believe that the war really was insignificant...!
You do understand that if we weren't there to begin with Iraq would have been able to do this themselves? Our war and presence there is what caused those oil fields to go unused to begin with.
Though I mean, if that is what this war was all about...cheap oil...then its very possible within the next few years we will see that again.
Under Hussein? You're kidding, right? Competition, free enterprise, bidding - under Sadam? lol
Posting Permissions
Bookmarks