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Are low gas prices linked to the failures of GM, Ford, and Chrysler?

Discussion in 'Political Discussion' started by MrBigglesWorth, Nov 9, 2008.

  1. MrBigglesWorth

    MrBigglesWorth Rookie

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    I thought gas would come down but I never thought it would near $2.00 per gallon. So I began to think why.

    Seeing that GM suffered quarterly losses and will likely be short on cash with the possibility of going bankrupt could it be the oil companies plan to make driving SUV's and gas guzzlers more possibly.

    Why make your money source extinct which will usher in more fuel efficient vehicles that will kill their profits in the near future? I think they are trying to save the big three and resurrect their gravy train
  2. PatriotsReign

    PatriotsReign On the Roster

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    In my opinion, it is a combination of factors.

    1. The run-up in prices may have been partly due to a scam by oil futures investors to make money

    2. In early 2008, oil consumption was increasing at rates never seen before. When considering economic growth of the "emerging markets", one could easily see oil becoming a scarce resource

    3. In my opinion, it's NOT the failure of the auto industry but rapidly decling world demand. Just because consumers aren't buying motor vehicles doesn't necessarily affect demand for petroleum products. But worldwide economic decline does. Since the future economic landscape looks very dim, so does the future's market for oil.

    People are still driving as many cars as they would if they were buying new ones, so new car sales have little to do with oil consumption. My car has 160K miles on it. If I bought a new car, I wouldn't be using any more gas.
    Last edited: Nov 9, 2008
  3. cupofjoe1962

    cupofjoe1962 Rookie

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    I just hope we get though the winter before the prices spike again.
    I got gas for 2.09 in Norwood this afternoon.
  4. PatriotsReign

    PatriotsReign On the Roster

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    It'll be a long time before you see prices spiking again. At least that is my strong opinion.
  5. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    It's about 2.75 here in CA - BECAUSE WE HAVE SPECIAL GAS TO REDUCE EMISSIONS.
  6. cupofjoe1962

    cupofjoe1962 Rookie

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    I hope you are right.
  7. MrBigglesWorth

    MrBigglesWorth Rookie

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    I just don't think world wide consumption has decreased that much. I'd have to see some figures on consumption but I have to think 10% or so and that doesn't really correlate with a spike in $4.00 down to almost half price.

    it is was the specualtors then we just got scammed big time and the government was complicit
  8. PatriotsReign

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    My corp. office is in Northridge, CA. Everytime I go out there, I can't believe how much more you guys have to pay for gas. To me, it should be the around the same price all over the country but I guess state taxes & emissions policy can a big effect upon the price.
  9. BelichickFan

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    #24 Jersey

    We do have 35 cents or so in state tax. But when I keep yaking about being careful what you wish for with strict carbon emission rules, I know what I'm talking about because I pay for it. It ain't cheap.
  10. sdaniels7114

    sdaniels7114 Rookie

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    The number of Stage 1 smog alerts in LA has gone from 100-200 per year to just a few. What's that worth? One's left to wonder just how many people spent their lives as sickly and weak because they just couldn't breathe properly during their childhood development. Aside from humanitarian concerns, what's that worth in lost tax revenue?
  11. BelichickFan

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    #24 Jersey

    It's not worth anything to many of us in CA who live in completely smog free areas.
  12. weswelker#83

    weswelker#83 Rookie

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    [​IMG]
    The Stimulus Package Nobody's Talking About
    A little quick math: 378 million gallons per day. A savings of $1.33 per gallon. That's $500 million per day, or about $183 billion per year.

    Sound familiar? That's just slightly more than the amount the stimulus package that put $600 checks in millions of pockets earlier this year.

    The Stimulus Package Nobody's Talking About
  13. MrBigglesWorth

    MrBigglesWorth Rookie

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    one way to think about it. but it's just giving people money back they had before.

    all this could be intepreted as a tax refund or the $4.00 per gallon before was a higher tax paid.
  14. PatriotsReign

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    But this proves just how much trouble our economy is in. This huge savings in fuel cost has had no affect on our economy and it won't even if it drops to $1.50/gallon. That's how much trouble we're in.
    Last edited: Nov 10, 2008
  15. shmessy

    shmessy Maude Staff Member PatsFans.com Supporter

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    #75 Jersey

    Norwood tends to give lots of people gas.
  16. MrBigglesWorth

    MrBigglesWorth Rookie

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    that's because we charged up so much debt. schiff would say we spent ourselves into stupidity and we have nothing else to spend plus in the meantime we spent all this money and little to none was on infastructure.
  17. PatriotsReign

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    Despite his arrogance, Schiff has some pretty good points. Personally, I don't like him at all. He seems to have some sort of a napolean complex. If you watch him on a panel on CNN or FOX, you'll see him talk as if everyone else is an idiot. In my opinion, he's going to end up looking like the idiot.

    yes, we "did" spend foolishly, but now our problems have gone far beyond that. It's like catching a cold that lead's to pneumonia....at that point, Nyquil isn't going help.
    Last edited: Nov 10, 2008
  18. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    IMO Mismanagment for the last 30 years is what is killing these car companies. They smugly produced lousy cars for that long, ignoring the fact that people were buying more reliable Japanese,and Europian brands. They rolled out suv's like there was no end in sight for cheap gas, even though gas went up time and time again.There was no emphasis on designing and building quality fuel efficiant cars. I haven't bought an American brand car since my wife and i bought what we eventually called the Anti-Christ in the mid-eighties. That car (a Chrysler) litterally fell apart. They only have themselves to blame i have no sympathy for them.Maybe part of their thinking was "if we build cars that don't last people will have to buy new cars more frequently". If that was their thinking it backfired on them.
    Last edited: Nov 10, 2008
  19. PatriotsReign

    PatriotsReign On the Roster

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    Although we really can't afford the job losses and having Americans buying even more foreign cars, the big 3 DESERVE to be left to die...I agree with you and that is truly what they deserve, but it won't happen.
  20. PressCoverage

    PressCoverage Banned

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    Spot on... But also, the price spikes, while a real function of supply/demand, were exaggerated even further in order to purposefully supress demand.... It worked too well ... Now Big Oil is saying "uh-oh"...

    They're still not finding new oil pools of any significance... And prices will spike again...

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