Welcome to PatsFans.com

OPEC Blames U.S. Economic "Mismanagement,"

Discussion in 'Political Discussion' started by weswelker#83, Mar 7, 2008.

  1. weswelker#83

    weswelker#83 In the Starting Line-Up

    Joined:
    Dec 13, 2007
    Messages:
    4,540
    Likes Received:
    9
    Ratings:
    +12 / 0 / -0

    Cartel Blames U.S. Economic "Mismanagement," Not Lack Of Supply, For Pushing Crude Past $104 A Barrel

    Cbs story:
    http://www.cbsnews.com/stories/2008/03/05/business/main3907823.shtml?source=mostpop_story


    Reuters video:
    http://www.youtube.com/watch?v=d_rxhsiVvWE


    http://www.berkshireeagle.com/editorials/ci_8485794
     
    Last edited: Mar 7, 2008
  2. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

    Joined:
    Jan 4, 2005
    Messages:
    24,867
    Likes Received:
    108
    Ratings:
    +239 / 8 / -13

    I'm so happy the econuts in congress has blocked all oil drilling in the US, mining low sulfur coal in the western states, building any new oil refineries and mandating 15+ gas formulations which cost more, aren't you.
     
  3. STFarmy

    STFarmy In the Starting Line-Up

    Joined:
    Sep 14, 2004
    Messages:
    2,677
    Likes Received:
    6
    Ratings:
    +6 / 0 / -0

    Ugh. Thanks OPEC. Of course, they're partially right, Bush has handily mismanaged the economy. But them refusing to amp up output doesn't help either.
     
  4. maverick4

    maverick4 Banned

    Joined:
    Jan 17, 2005
    Messages:
    7,669
    Likes Received:
    17
    Ratings:
    +17 / 0 / -0

    In the 70's OPEC agreed to sell oil in dollars, and many of those countries have huge reserves of US dollars or treasury bonds.
    But just like China, they are starting to get pissed that the dollar's value (thus their holdings) has dropped by around half over the past 8 yrs.

    There's no easy fix to this, it's bad news for us.
     
    Last edited: Mar 7, 2008
  5. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

    Joined:
    Jan 4, 2005
    Messages:
    24,867
    Likes Received:
    108
    Ratings:
    +239 / 8 / -13

    If they try to hammer the dollar they are hurting their customers, and are hurting the value of their holdings. This is why the markets in Europe and Asia are going down also.
     
  6. Real World

    Real World Moderator Staff Member

    Joined:
    Aug 15, 2006
    Messages:
    27,131
    Likes Received:
    219
    Ratings:
    +524 / 6 / -2

    They are partly right. The devaluation of the dollar has aided the increase in price per barrell. We also haven't had any type of forward thinking energy plan in this country for the last 20 or 30 years. When was the last nuclear reactor built? The last refinery? When did we last permit offshore exploration for oil reserves off our coasts? The problem is that oil was $10-20 a barrell for a long time, and no one thought forward. Now, it's $100+, and everyone is rightfully pissed about the costs. Good business men, & leaders, act, as opposed to react. Our leadership in this country doesn't always do that. One of the good things of $100 oil is alternatives have to be created and invested in. It's somewhat like a recession, it's undesirable, and difficult, but it's corrective, and provides a better landscape once passed.
     
  7. weswelker#83

    weswelker#83 In the Starting Line-Up

    Joined:
    Dec 13, 2007
    Messages:
    4,540
    Likes Received:
    9
    Ratings:
    +12 / 0 / -0


    Fiat money + Fed cuts weakened the dollar .
    The feds are trying to surf the wave.
     
  8. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

    Joined:
    Sep 13, 2004
    Messages:
    31,626
    Likes Received:
    216
    Ratings:
    +509 / 13 / -11

    #24 Jersey

    The Fed is trying to avoid a recession and keep the economy going the best it can. Inflation and the dollar are concerns but they're secondary to getting growth going again.
     
  9. STFarmy

    STFarmy In the Starting Line-Up

    Joined:
    Sep 14, 2004
    Messages:
    2,677
    Likes Received:
    6
    Ratings:
    +6 / 0 / -0

    You're right, that's what I've been saying. I think I've even heard that the alternative we have now aren't economically viable (anyone else seen Falling Down?) until gas hits like 5 bucks a gallon. We're getting there, so now people will now start to pick up the ball of alternative energy source hopefully. Human ingenuity is amazing under pressure. I know that supposedly there was a magical electric car that was wonderfully inexpensive and more efficient than the internal combustion engine that was snuffed out by evil rich white folks years ago, but I think if it was that affordable it would have caught on.

    Nothing would please me more than to be independent of the middle east's oil so we can just flip them the bird.
     
  10. shmessy

    shmessy Maude Staff Member PatsFans.com Supporter

    Joined:
    Sep 13, 2004
    Messages:
    19,118
    Likes Received:
    511
    Ratings:
    +1,313 / 9 / -7

    #75 Jersey


    Halliburton Dick says "Over my dead body".
     
  11. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

    Joined:
    Sep 13, 2004
    Messages:
    31,626
    Likes Received:
    216
    Ratings:
    +509 / 13 / -11

    #24 Jersey

    And how much progress on oil alternatives were made with 8 years of Clinton/Gore ? Bush and Cheney have made no progress - exactly as much as their predecessors.
     
  12. jack

    jack 2nd Team Getting Their First Start

    Joined:
    Sep 16, 2007
    Messages:
    1,571
    Likes Received:
    0
    Ratings:
    +0 / 0 / -0

    Should the rights beloved george bush be sainted?
     
  13. Real World

    Real World Moderator Staff Member

    Joined:
    Aug 15, 2006
    Messages:
    27,131
    Likes Received:
    219
    Ratings:
    +524 / 6 / -2

    We've been manipulating rates for far too long, like 15-20+ years now. I know rates bumped up in the late 80's, early 90's, and we saw what the result was after a couple of years of trouble. I don't think enough people understand how critical rates are to long term economic trends. At some point you have to pay the piper. This is expressly why stable, long term growth is far more preferable than an economic boom. The fed has been dropping rates to increase economic activity & growth, but what they've done in the process is devalue the dollar, because credit is cheaply available. What's worse, is the artificial growth in the value of property, which was directly related to low rates and credit, is limiting the effectivity of the rate reductions. Why? Cuz people had already refi'd against their fony equity years ago, and now that they're in trouble, and housing has come down to earth, they find themselves in the negative. I warned my friends about this the last 5 years. None of them listened except for one or two. I'm 33, so lots of my buds have been getting married lately. Three close friends bought houses in the last 2-3 years. Dumb. Two are paying through the nose, the other isn't, but he still overpaid by about $100k, had he waited. None of their homes are worth what they paid for anymore. Eventually they will be, but not for some time.
     
  14. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

    Joined:
    Jan 4, 2005
    Messages:
    24,867
    Likes Received:
    108
    Ratings:
    +239 / 8 / -13

    Halliburton would love to drill in the US and build new refineries, try again.
     
  15. weswelker#83

    weswelker#83 In the Starting Line-Up

    Joined:
    Dec 13, 2007
    Messages:
    4,540
    Likes Received:
    9
    Ratings:
    +12 / 0 / -0

  16. Real World

    Real World Moderator Staff Member

    Joined:
    Aug 15, 2006
    Messages:
    27,131
    Likes Received:
    219
    Ratings:
    +524 / 6 / -2

  17. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

    Joined:
    Sep 13, 2004
    Messages:
    31,626
    Likes Received:
    216
    Ratings:
    +509 / 13 / -11

    #24 Jersey

    Foreclosures are part of the process. These people do need to remember, though, they will have subprime credit for a long time and won't be getting another home loan for a decade.

    It's unfortunate most people aren't able to comprehend what an adjustable rate means - that's where the problem mostly lies.
     
  18. shmessy

    shmessy Maude Staff Member PatsFans.com Supporter

    Joined:
    Sep 13, 2004
    Messages:
    19,118
    Likes Received:
    511
    Ratings:
    +1,313 / 9 / -7

    #75 Jersey

    Of course, the lending industry played no part in all this.

    I'm a Certified Financial Planner with over 16 years in Finance, personally managing over $30 million in client investments. I have read their come-ons for the ARMs and the Interest-Only's. The Government winked at the double speak in the lending verbiage for years......at a time of 40-50 years historic lows in interest rates for fixed 30 year mortgages. Thank goodness, none of my clients were sucked in to this. I agree, the individual bears some of the responsibility. However, the greater shame goes to the fox in the henhouse.

    This has been like watching a car crash in slow motion the past five years.
     
  19. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

    Joined:
    Sep 13, 2004
    Messages:
    31,626
    Likes Received:
    216
    Ratings:
    +509 / 13 / -11

    #24 Jersey

    The last thing I am is a big government, rules and regulations guy. But I think the American public has proven they just aren't that smart. I really think we need be make mortgages solely fixed rate/fixed payment unless the borrower meets some threshold of down payment/loan education criteria. I hate to say it but if the average borrower is too dumb to realize an ARM will adjust their payments, find out what the max the ARM can adjust to and make sure they can afford it then that option just shouldn't be available to them.
     
  20. Real World

    Real World Moderator Staff Member

    Joined:
    Aug 15, 2006
    Messages:
    27,131
    Likes Received:
    219
    Ratings:
    +524 / 6 / -2

    "Money is best kept in the hands of those who know how to spend it"

    - Alexander Hamilton -
     

Share This Page

unset ($sidebar_block_show); ?>