wody Posted December 8, 2008 Report Share Posted December 8, 2008 the economy is shit because people don't have money to spend. cheap gas = more money in my pocket = me spending more money on other goods and services = better economy. i'm missing the logic in the higher oil prices = better economy. the economy has been falling out for over a year now and oil prices continued to increase, not solving anything, and now that fuel prices have dropped significantly, this years black friday showed some great numbers. its a chain reaction, if people aren't spending money on goods and services, people lose jobs, then they don't spend money and so on and so on. Quote Link to comment Share on other sites More sharing options...
brobradh77 Posted December 8, 2008 Report Share Posted December 8, 2008 its simple supply and demand along with the value of the dollar deminishing is killing us....as for oil companies only being effected you need to look again....virtually every market inn the world is linked to the oil/gas/energy buisness in one shape or form....if you dont believe it just look at the past few years...gas prices are high...buisnesses are making record profits etc... and then the bottom falls out and all of a sudden gas prices plummet and now there are massive lay offs through out america...coincidence??? Quote Link to comment Share on other sites More sharing options...
diggerdan11 Posted December 8, 2008 Report Share Posted December 8, 2008 My biggest fear of gas being at under $1 a gallon is the effects it could have in the future. Oil at this low amount will be the end of OPEC. OPEC for a long time has regulated the production of oil in order to keep the prices up, but the economy lately is dictating it differently. Most of the big oil producing countries like Russia, Venezuela, Iraq, and Iran who are socialist countries have government controlled oil industries. they use the revenue from the sale of oil in order to pay for there social programs like health care, welfare etc... But in order for these countries to pay for these programs oil has to be around $80 a barrel. Well if oil drops bellow 25 a barrel these countries will have to break away from OPEC and begin selling oil on there own. and at 25 a barrel in order for these countries to fund there social programs they will have to produce as much oil as they possibly can, which will keep the price of oil down for a long time. Even when the economy beings to turn around (which it will) oil will still stay low. Its basic Economics if these countries supply more then the prices will be lower. Now it seems like a good thing that oil is so low, im so happy that it only costs 30 bucks to fill my tank and may be as low as 20 soon. But my biggest fear like a stated earlier is the effects in the long run. The biggest point i need to make is this: There Is Not and Unlimited amount of oil and one day we will run out!!! If oil stays low we will continue to burn it like crazy, At $1 a gallon does anybody really care if there vehicle only gets like 12mpg no not really. Since gas has been dropping like crazy i have been driving my truck more and more because i figure hey it not big deal gas is cheap, before i was carpooling with my GF in her car that gets twice the millage. We need to seriously look harder into alternate fuels and different forms of combustion, because oil is not going to last forever. And the only way we as a society will work harder to beef up our alternate fuel research is if gas is $2.50 to $3 a gallon. $1 gas over an long period of time could be the end of Hybrids (dont get me wrong, i do not have much respect for hybrids, or many hybrid owners) also Hydrogen cars and even solar cars and vehicles burning on bio diesel or ethanol. $1 gas seems good for now but in the long run it could lead to many problems that i do not believe we might net be prepared for in the future Sorry about the long post but sometimes i cant shut up Quote Link to comment Share on other sites More sharing options...
dubdaddy420 Posted December 8, 2008 Report Share Posted December 8, 2008 I really wish people would realize higher: higher(not super high but enough to make it have profitability) oil and gas prices=better economy. Quote Link to comment Share on other sites More sharing options...
WODY'S GIRL Posted December 8, 2008 Report Share Posted December 8, 2008 (edited) if you dont believe it just look at the past few years...gas prices are high...buisnesses are making record profits etc... ??? Record profits???Is that why many huge companies have gone out of business or filled bankruptcy and that did not just start a few months ago when gas started falling...If there was all these record profits why are all these businesses going under???? The only people making record profits are the oil companies...Google "compaines with record porfits in 2008" and see what pops up...all oil companies thats all. Edited December 8, 2008 by WODY'S GIRL (see edit history) Quote Link to comment Share on other sites More sharing options...
wody Posted December 8, 2008 Report Share Posted December 8, 2008 forget it. counting to ten...... Quote Link to comment Share on other sites More sharing options...
misterp Posted December 8, 2008 Report Share Posted December 8, 2008 call me dumb to the whole situation, but i thought our american dollar was based on GOLD not Oil?... Richard Nixon took the dollar off the gold standard in 1971; he did so by himself without consulting any financial people or even his own cabinet. Prior to that time, all world currencies were dollar-based, and the dollar was gold-based with the price of gold fixed at $35/ounce. Because of the cost of prosecutting the Vietnam war, and growing imports into the US, and a bunch of other factors there were as many US Dollars outside the US border as there was inside the US, and inflation was out of control and much of US gold was leaving the country as foreign governments would hand a few billion dollars to the treasury and demand it be converted to gold. At that time inflation had doubled in just a couple years, so Nixon just one day woke up and announced to the world 'that's IT' and he pulled the plug on the whole arrangement, now today almost no government uses a gold-based currency. And that led to the forming of OPEC, leading to the OPEC embargo, etc, etc, etc... Nixon taking the dollar off the gold standard was one of the pivotal points in US history. Mr. P. Quote Link to comment Share on other sites More sharing options...
CoolBlueSS Posted December 8, 2008 Report Share Posted December 8, 2008 I think the biggest reason that companies are failing, being bailed out, ect can be blamed on Wall St/subprime mortgage. What happens when you lighten up credit standards, and loan money to broke people? You get burned. Add to that, now they're going to gamble on the fact that broke people are going to be able to pay their mortgage payments. Now, here we are. A $700,000,000,000.00 bail out. Lenders have now tightened up their standards bigtime, so people aren't, or aren't able to buy anything big. The trickle down has affected the auto manufacturers, dealers, small business, ect. Quote Link to comment Share on other sites More sharing options...
brobradh77 Posted December 8, 2008 Report Share Posted December 8, 2008 Record profits???Is that why many huge companies have gone out of business or filled bankruptcy and that did not just start a few months ago when gas started falling...If there was all these record profits why are all these businesses going under???? The only people making record profits are the oil companies...Google "compaines with record porfits in 2008" and see what pops up...all oil companies thats all. thats kind of what i meant...did you hear of as many lay offs etc... say last year vs. this year? Quote Link to comment Share on other sites More sharing options...
ItsJac Posted December 8, 2008 Report Share Posted December 8, 2008 I honestly dont think gas prices should of never reached the prices they did, That was ridiculous. There was no reason for prices to jump to 147 a barrel in a couple of months. It almost double from its normal price. Something dont sound right. Its happen to be the one yr in a long time we get a stimulus package and most went to gas in one way or another. Its sound Fishy. Oh well $hit happens...Me I'm happy gas prices have come down, Now I can afford to put gas in and have some extra spending money for other things. Quote Link to comment Share on other sites More sharing options...
dubdaddy420 Posted December 8, 2008 Report Share Posted December 8, 2008 I just dont see whats the big deal about oil companies finally making some good profits. Look at phone carriers banking institutions, retailers, home builders and realtors, and other business's, they have been making tons of money and charging people out the ass for a long time, and people were still buying the best phones shopping at the most expensive stores, trying to buy the biggest houses and nobody seemed to care. But as soon as oil and gas firm starts to make some money ,and the people in that field start to do well everyone thinks that they are making to much money. Gas is taxed out the ass already and people in high places are wanting to enact even more taxes on firms( windfall profits tax) reducing companies earnings. In the 80's when the bottom fell out of the oil business you didn't see oil companies with their hands out, they had to lay off thousands of people shut there doors and barely make it by. Nobody gave a shit when they weren't making a dime so people shouldn't care now that they are making "record profits". The oil and gas business creates hundred of thousands of jobs especially in my area, and do so much for communities. I think people should get behind Oil and Gas firms because like it or not they are doing good. Quote Link to comment Share on other sites More sharing options...
CenWaSS Posted December 9, 2008 Report Share Posted December 9, 2008 Im in the solar power industry, we're doing great. High gas prices dont hurt us...its better when prices are high as it puts more focus on alternative energy. IMO Id rather have a good paying job and paying high gas prices then no job paying low gas prices. I agree with Mr. P, he's right. Quote Link to comment Share on other sites More sharing options...
CoolBlueSS Posted December 10, 2008 Report Share Posted December 10, 2008 I just dont see whats the big deal about oil companies finally making some good profits. Look at phone carriers banking institutions, retailers, home builders and realtors, and other business's, they have been making tons of money and charging people out the ass for a long time, and people were still buying the best phones shopping at the most expensive stores, trying to buy the biggest houses and nobody seemed to care. But as soon as oil and gas firm starts to make some money ,and the people in that field start to do well everyone thinks that they are making to much money. Gas is taxed out the ass already and people in high places are wanting to enact even more taxes on firms( windfall profits tax) reducing companies earnings. In the 80's when the bottom fell out of the oil business you didn't see oil companies with their hands out, they had to lay off thousands of people shut there doors and barely make it by. Nobody gave a shit when they weren't making a dime so people shouldn't care now that they are making "record profits". The oil and gas business creates hundred of thousands of jobs especially in my area, and do so much for communities. I think people should get behind Oil and Gas firms because like it or not they are doing good. The big difference is that you don't have to have a cell phone, or shop at high end stores, ect. You have a choice of where to shop, or whether to have a phone or not. But, gas/oil you have no choice if you want to get to work to make money to pay your bills. Sure, there's public transportation for those areas that have it, but for those that don't it hit them harder. High fuel prices affect everything. There is not one single thing that is shipped or delivered to consumers that does not include some kind of fuel burning vehicle, and that affacts all of us. Quote Link to comment Share on other sites More sharing options...
dubdaddy420 Posted December 10, 2008 Report Share Posted December 10, 2008 (edited) Everyone has to buy a house which is way over inflated, everyone needs clothes, you didnt have to buy an SSS, you could have bought an aveo or ride a scooter. The thing is people who are in the oil business have been struggling for a long time while all the other industries did well and now people in the oil and gas business are getting what they long overdue deserve. Gas stayed below the equilibrium price and didn't inflate like the rest of the market, and all of the sudden it got a huge jump. People just weren't prepared for it, gas should have going up along time ago, their is only a finite amount of oil. Im not saying that jump in price to $145 was totally deserved, but some jump in price was. Edited December 10, 2008 by VhoGmc (see edit history) Quote Link to comment Share on other sites More sharing options...
CoolBlueSS Posted December 10, 2008 Report Share Posted December 10, 2008 Everyone has to buy a house which is way over inflated, everyone needs clothes, you didnt have to buy an SSS, you could have bought an aveo or ride a scooter. The thing is people who are in the oil business have been struggling for a long time while all the other industries did well and now people in the oil and gas business are getting what they long overdue deserve. Gas stayed below the equilibrium price and didn't inflate like the rest of the market, and all of the sudden it got a huge jump. People just weren't prepared for it, gas should have going up along time ago, their is only a finite amount of oil. Im not saying that jump in price to $145 was totally deserved, but some jump in price was.I somewhat agree with what you're saying. It has been low for a long time, and I'm all for companies making a profit. That's why they're in business. If it would have gradually increased to $4 a gallon over the past 20-25 years it wouldn't have been a big issues, but it went from $1.20-$4+ over a 4-5 year period. That's a shock to the system that most people, and industries, were not preppared for. You're right, we all make choices in our purchases. Some good, some bad. But, it's when prices increase like they did on something that you have NO choice in whether to buy or not. Quote Link to comment Share on other sites More sharing options...
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