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2008-12-19 Home Front Economy

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Posted by tipper 2008-12-19 12:35|| || Front Page|| [1 views ] Top

#1 Probably to early to celebrate.

Posted by g(r)omgoru 2008-12-19 13:01|| 2008-12-19 13:01|| Front Page Top

#2 They cut production and prices still dropped. I hope all those wall street types that bet everything on oil prices going up, while we suffered 5 buck a gallon gas, are broke and homeless. Let that be a lesson for screwing the US consumer.

Posted by 49 Pan 2008-12-19 13:12|| 2008-12-19 13:12|| Front Page Top

#3 The "production cut policy" is only an announcement and there is still plenty in the "pipeline". Lets wait until the quantity available decreases before we start cheering. Supply and demand do work.

Posted by tipover 2008-12-19 14:57|| 2008-12-19 14:57|| Front Page Top

#4 I hope all those wall street types that bet everything on oil prices going up...

Do you see stories about them? I haven't. It's not like it wouldn't be particularly information the masses would avoid, more like enjoy. So, where are they all? Wonder how many had 'escape clauses' by practice or wink? More so, those on the street should be the entire federal and private regulatory agents who allowed this to manifest. They had the power to call margin at any time and absolutely failed their duties. Instead, the borrowing freeze initiated by the Fannie Mae debacle created a natural market call and you see the result. So much could have been avoided but the system failed and failed because of the people entrusted with it. They don't deserve the trust.

Posted by P2k on holiday 2008-12-19 15:17|| 2008-12-19 15:17|| Front Page Top

#5 You do NOT want sustained $34 oil prices, trust me on this one. For that to happen the global economy has to continue to shrink. Almost all the 'new' oil we are exploring for costs more than that to find and develop, and a lot of the oil recently put onto production costs more than that to produce (tar sands etc.) Already the oil companies are cutting back investments so as to stay solvent (we know better than to expect a bail-out if we screw up) so production WILL decline. For prices to stay flat as production declines demand MUST decline, meaning economic activity would decline - along with all that it entails. Increased unemployment, increased taxes (yep - when the activity to be taxed declines the governments raise the tax RATE on what's left cuz they're the last ones to cut spending.) I'd say $40 is about as low as you want to see for now.

Posted by Glenmore">Glenmore 2008-12-19 16:44|| 2008-12-19 16:44|| Front Page Top

#6 You do NOT want sustained $34 oil prices, trust me on this one.

I don't think it's a question of what anyone wants. Prices will probably go into the teens this time around. We are going into a recession much worse than what we had in the 80's. Back then, US oil consumption dropped 4m barrels per day. This time around, we may be looking at a bigger drop domestically, coupled with similar drops around the world. China, OPEC's great hope for higher demand, is faltering. From a news article: Paul Ting, an oil analyst who tracks oil trends in China, said in a recent report that demand in China is now declining more swiftly than in the U.S., where oil use is falling at a pace not seen since the 1980s.

Posted by Zhang Fei 2008-12-19 17:12|| http://timurileng.blogspot.com]">[http://timurileng.blogspot.com] 2008-12-19 17:12|| Front Page Top

#7 World Bank: Russia may need help if oil falls more. Drill, Baby, Drill!

Posted by William Marcy Tweed 2008-12-19 19:52|| 2008-12-19 19:52|| Front Page Top

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