Why The Economy is Better than You Think

[cbi0090]

There was a very interesting piece in the Economist magazine about how the backward looking mechanisms of asset valuations make things like the recent bubbles occur and that we can expect more of them unless a signficant structural change in the process is made. We can also expect them to occur more often due to the pace that the financial world operates under thanks to technology.

 

[midcan5]

A Weak Dollar, Bad Fed Policies and Hedge Fund Speculators

Why Oil Prices Are So High

By Paul Craig Roberts

"How to explain the oil price? Why is it so high? Are we running out? Are supplies disrupted, or is the high price a reflection of oil company greed or OPEC greed. Are Chavez and the Saudis conspiring against us?

In my opinion, the two biggest factors in oil’s high price are the weakness in the US dollar’s exchange value and the liquidity that the Federal Reserve is pumping out."

Paul Craig Roberts: Why Oil Prices Are So High

 

[Mohican83]

It is our dependance on oil in general and the fact China and India are willing to pay high prices for oil. As high tech as we are (they are making organism into tiny living computers) we still use gasoline vehicles. Explain to me again why oil companies are receiving tax breaks when they are making records profits

 

[Paulie]

A Weak Dollar, Bad Fed Policies and Hedge Fund Speculators

Why Oil Prices Are So High

By Paul Craig Roberts

"How to explain the oil price? Why is it so high? Are we running out? Are supplies disrupted, or is the high price a reflection of oil company greed or OPEC greed. Are Chavez and the Saudis conspiring against us?

In my opinion, the two biggest factors in oil’s high price are the weakness in the US dollar’s exchange value and the liquidity that the Federal Reserve is pumping out."

Paul Craig Roberts: Why Oil Prices Are So High

It's a tad bit ironic that you would post a piece from Roberts, as conservative as he is.

But I'll take it wherever I can get it, I guess. He's right on the money, and usually always is.

 

[AllieBaba]

And if you click your heels together three times and repeat "There's no place like home. There's no place like home. There's no place like home" you'll be whisked back to Kansas, too.

I may have to sell my home because I may not be able to heat it this winter.

I can assure you that I do not need to read that fact in the papers to know that it isn't a good thing. sport.

If this energy spike isn't going to effect you in such a dramatic way, bully for you.

But for about half of your fellow American citizens this is not a minor problem.

Inevitably their pain will become YOUR pain.

Better pray we open up Anwar and start off-shore drilling, then.

 

[Paulie]

Better pray we open up Anwar and start off-shore drilling, then.

Haven't we been over this ad nauseum?

ANWR will not supplement us enough to remove our dependence, and then there's the problem of not having even remotely enough refining capacity in the country.

I'm all for drilling it, and the many other areas where it exists, but there are other steps that need to be taken along with it, before it would put a dent in this oil mess.

 

[AllieBaba]

Don't you find it a bit...idiotic...that people whine about the energy crunch, which has come about because we stopped up our own oil, and which can only be fixed by opening it up?
I certainly do.
Wait till they open up all the dams....I wonder who the left will blame for lack of electricity then? Linemen?

 

[Zoomie1980]

The economy is what it is.

What you call the state of our economy is completely irrelevant.

I think this guy is somewhat nuts, personally.

Imagining that economic reports are some kind of liberal biased media conspiracy is of course, partisan insanity.

Unemployment is up, inflation is up, the stock market is down, energy prices are spiking, and the net worth of most people (which is tied to the value of their homes, their only real investment) is down, thus adding to the liquidity crises.

Something like 2,000,000 households are facing losing their homes in the next year or so.

With something like half the American households in pretty serious financial straits, I think we're entering a period of obvious stagflation.

The problems we have have nothing to do with the upcoming election and everything to do with decades of stupid short sighted economic and tax policies.

That's because millions of economically marginal people bought homes they could not afford. Had lending practices during the housing boom been as strict as they were 30 years ago, virtually no one would be losing their home today.

And about 5% of American households are in "dire" straits. 92% of all mortgages are being paid ON TIME, 88% of all credit cards are being paid ON TIME, and about 99% of americans who want to work are working.

 

[Zoomie1980]

riiiiiiiiiiiiiiiiiiiiiiiiiight.... the recession is a vast, left-wing conspiracy...

What recession? We have yet to reach the technical threshold of one. I'd hate to see the suicidal mania that would ensue if we a 1982 style recession...

 

[jreeves]

That's because millions of economically marginal people bought homes they could not afford. Had lending practices during the housing boom been as strict as they were 30 years ago, virtually no one would be losing their home today.

And about 5% of American households are in "dire" straits. 92% of all mortgages are being paid ON TIME, 88% of all credit cards are being paid ON TIME, and about 99% of americans who want to work are working.

Leave it to a lot of liberals to use an economic downturn, to try and justify bigger government and insane regulation.

 

[Zoomie1980]

A Weak Dollar, Bad Fed Policies and Hedge Fund Speculators

Why Oil Prices Are So High

By Paul Craig Roberts

"How to explain the oil price? Why is it so high? Are we running out? Are supplies disrupted, or is the high price a reflection of oil company greed or OPEC greed. Are Chavez and the Saudis conspiring against us?

In my opinion, the two biggest factors in oil’s high price are the weakness in the US dollar’s exchange value and the liquidity that the Federal Reserve is pumping out."

Paul Craig Roberts: Why Oil Prices Are So High

Neither of those comprise much of the oil price explosion. US Dollar has only decline 13% compared the Euro and Yen in the last 2 years but oil has DOUBLED. Supply is no shorter today than 2006. So what is it.

SPECULATORS. All those investment houses who saw stocks and mortgage investments cave rushed to commodities to shore up profits. The Saudi's are 100% right in that the current price of oil is completely unjustified. When it crashes, it will crash HARD and FAST. The REAL price of oil should be in the $45 range TODAY.