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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: snakeweasel (Nov 28, 2008 6:23 am) "I was also wondering where you got 9/10ths of a cent. " An early marketing ploy, rationing the key word in the early '40's. Yes that predates WWII, even WWI. But as an economist not a historian I am interested in your opinion on credit default swaps. Thanks. 
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Replying to: jipster (Nov 28, 2008 7:00 pm) |
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Replying to: duke23 (Nov 28, 2008 9:31 pm) I was just wondering where the 9/10ths of a cent tax came from. I think I know but its wrong. But as an economist not a historian I am interested in your opinion on credit default swaps. Can you say completely unregulated horse race bets? While not causing the economic mess we are in it certainly made it worse. As a form of insurance against loss in owning financial instrument it is a good thing. But CDS went way overboard to the point that you didn't even have to own the financial instrument or even suffer a loss for it to pay out. With a system like that where you start having greater than usual defaults those guaranteeing those intraments start having massive losses. Many of the big financial institutions that have failed have done so due to CDS's. |
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Replying to: duke23 (Nov 28, 2008 9:31 pm) Not that it has much to do with $4 gas, but it did make me curious. That is ONE giant can of Worms. No wonder our economy is in such a tizzy. Here is the easiest read I could find on CDS. http://www.pbs.org/newshour/bb/business/july-dec08/solmancredit_10-07.html
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Replying to: gagrice (Nov 29, 2008 8:07 am) " Not that it has much to do with $4 gas, but it did make me curious. That is ONE giant can of Worms. No wonder our economy is in such a tizzy." Actually it has more to do with the current price of rug and the state of our economy than one would think. It has become a self fulfilling prophecy. I equate it to you buying an insurance policy on your neighbor making you the beneficiary, I sell you a gun and supply you with a 5th of Jack Daniels and send you home to contemplate your options. An insiduous product at best. Understanding on Bear & Lehman. Evil no? They seek to regulate such, and have them traded on an exchange rather than declare them illegal. They will succeed. The saga continues. In the old, shall I say good old days one would trust S & P or Moody's. Now that doesn't seem enough, you must hope for or even encourage the demise of one of your competitors. That of course weakens your own position but who ever said Wall St. was smart ? |
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Oil is bouncing around the $50 mark again today. OPEC won't cut production until at least Dec. 17. Gas is below $2 where I live. If you still have a job and your 401k hasn't imploded this is a pretty good time to be a car owner. I think I'll water the lawn with cheap gas again today. 
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Replying to: oldfarmer50 (Dec 01, 2008 10:10 am)  Unless you want to write a note on your lawn. I can has cheezburger, larsb. Just pickin' on ya lars, no harm intended.
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Replying to: tankbeans (Dec 01, 2008 3:44 pm) Who cares! Oil is flirting with $48. If it dies I'll just pave it over as a parking lot for the fleet of Hummers I'm buying. 
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Replying to: oldfarmer50 (Dec 02, 2008 8:46 am)
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I wonder if this was the same oil guy that was saying it would hit $200 by the end of the year? Gulf Oil CEO says gas could hit $1 next year RANDOLPH — Gulf Oil CEO Joe Petrowski said on Wednesday that the price of oil could sink to $20 per barrel, and there is a chance gasoline prices could drop as low as $1 per gallon by early next year. Speaking at a South Shore Chamber of Commerce breakfast at Lombardo’s in Randolph, the Brockton native said that after speculators drove oil prices up, there is a chance that the market will overshoot on the way back down, resulting in much lower prices at the pump. This could be just what GM and Ford need to sell all those BIG SUVs that make them money...
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