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Automotive News & Views How does gas at $4 and higher impact you?
2183 messages, Last post on Nov 21, 2009 at 5:13 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: kdhspyder (Oct 20, 2008 6:55 am) The bigger '09 Honda pilot is also there. Kia has a new 7-pasenger SUV. BMW, Suzuki and Hyundai also sell mid-sized. And these new crossovers that replace the Ford and GM mid-sized SUV's are marginally more efficient than the truck -based. Most cross-overs are luckly to get 25 mpg on the highway, so the combined-mpg is not that great. BMW is actually bringing an X1 to the market, which purportedly will approach 40 mpg with a diesel option.
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Replying to: larsb (Oct 20, 2008 7:27 am) I think high energy prices are a big factor in the housing market collapse.
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Replying to: steve_ (Oct 20, 2008 7:35 am) Higher gas prices did not kill anyone with a correctly written mortgage. People who GOT INTO MORE THAN THEY COULD AFFORD might have had an issue. But I can promise you that very few people came down to the choice, "buy gas or pay the mortgage?" If they did, then they were just idiots who made bad financial choices. Not enough people were in that circumstance to contribute to the issue If you took a poll of people who have been foreclosed on and asked them, "Did you ever have to decide on either buying gas or paying the mortgage?" I would bet my last dollar that the number would be 5% of them or less. When I refinanced my house in 2006, they offered me $25,000 more than I thought the home was worth. I could have been one of the stupid ones and taken the extra money - it was there for the taking. But I did not give in to the temptation and drive my mortgage payment through the roof and grab the cash. High gas prices affected the economy IN GENERAL in the ways that you mentioned - but there is no DIRECT CONNECTION between people having to pay higher gas prices and that money going for gas instead of a paying their mortgage contributing to the mortgage meltdown. |
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Here is a good example of why the lowering gas prices is a bad thing: PLS Keep Gas Prices High So while they remain worried about their savings and their jobs, some motorists are no longer facing the kind of gas prices that had forced them to eat out less, avoid travel and bike to work. So in essence, they are saying what I have argued all along. Now that prices are lower, people are AGAIN going to resort to their "wasteful ways" and start eating our MORE, traveling more, and ceasing the riding of a bike to work. Sad. Just Sad. |
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Replying to: larsb (Oct 20, 2008 7:48 am) Gas prices fuel home defaults: Monroe foreclosures head for new record (Pocono Record)
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Replying to: larsb (Oct 20, 2008 8:36 am) I wouldn't care if gas prices were $3.50 if the oil companies were actually having to spend that much more to produce the product.
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Replying to: steve_ (Oct 20, 2008 8:52 am) Don't get me wrong. Higher Gas Prices were (as was many other items) a small contributor to the current recession. But a DIRECT contributor to the mortgage meltdown? No.
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Replying to: tankbeans (Oct 20, 2008 9:01 am) The same rationale GWB used to push his tax rebates. And it did give the economy a temporary boost. And personally, I LOVE to eat out at a nice restaurant. Many people do. But just as we were in the era of the SUV (wasteful) we were also on a trend of maxing out our credit cards because of spending far too much money on entertainment and dining. Money that COULD have gone toward the mortgage payment. One community here in Phoenix was reported on in the newspaper for driving their credit card balances through the roof just keeping up with trying all the new restaurants in the area. It was getting out of hand. If it took higher gasoline prices to make people realize that you can save a lot of money by stretching the family food dollar by eating at home more often, and learning to drive less and carpool more, then I say that was a good thing. Not many things have only one side of the story, though. There were the bad side effects of the prices which we all know about.
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Replying to: larsb (Oct 20, 2008 9:07 am) "The popping of the housing price bubble coincided with the run-up in gas prices. It can be argued that the magnitude of the increase in gas prices wasn’t suffcient to offset the gains households were seeing in the housing market. In a more steady market, gas price increases might not have been enough to derail the housing boom, but in the heated atmosphere of the bubble, gas price increases may have been the trigger that broke the expectation of continued growth. The households most affected by the rise in gas prices were those who had stretched the family budget to buy a house on the suburban fringe, often commuting long distances in the process. These families spent a higher fraction of their income on gas than the typical household and had less fexibility to accommodate the higher price of gas than others. And for the same reasons, as gas prices rose, houses in these far-fung neighborhoods tended to lose their market appeal frst and fastest." Driven to the Brink (click on the full study link there for the nitty gritty). |
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That's complete poppycock. No relationship. People spending $400 on gas a month instead of $250 did not cause them to default on their mortgage. What did?
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