some good economic news

[trip]

well, china today, said we will not suppliment gas prices for there folks

china's gas is like many nations subsidized by the government, thus, now the workers will have to pay the penney

there is a law in congress to stop "the enron loophole", it's a law that allowed enron to gouge california in 01-02 for astronomical energy costs because they controlled the market not becuase there was not plenty of energy

same stuff been goin on in oil futures


bernanke and paulson have been traveling the globe jawbonin with other countries leaders

bottom line, is together they are all trying to fight inflation together

we can grow the world at 2-3% easily, any more and inflation will kill us all, inflation is now a global versus local problem

it will take 3-4 months to see it at the pump, yet, cross fingers, it seems they finally finally finally got on this one and seemed to have acted smartly

imho, this is the first pitch to more world peace stuff, we are so monetarily interconnected now, when one jiggles the other might get caught in the whip

prayers for peace on earth thru monetary incentives

[firstenrgy]

Re: some good economic news

That is good to hear. Chinas subsidy was causing overconsumption there. Another plus is once the speculators see the downtrend in oil and start running for the exits it will drop prices as fast as they pushed them up. Like you sai, it will take several months to play out but its good to know that it's on the way.

[daved150]

Re: some good economic news

That is good to hear. Chinas subsidy was causing overconsumption there. Another plus is once the speculators see the downtrend in oil and start running for the exits it will drop prices as fast as they pushed them up. Like you sai, it will take several months to play out but its good to know that it's on the way.

....on the market cost. it wont translate to the pump for month's. i agree that, that is great news!!

how come if the barrel goes up at the market, shyt's gone up at the pump.

but if a brrel goes DOWN on the nse, it almost NEVER goes down at the pumps!!

[trip]

Re: some good economic news

it has too do with refineries input and ouput


gas your pumping today, got brought to the gas station yesterday, and finished refining the day before


the oil they used they bought a few months ago, it takes 4 weeks to reach the refiner, and then they store it until they need it, and obvoiously they keep a hefty inventory

plus, refiners are always behind on the way up, and they make it up on the way down, just typical biz

[daved150]

Re: some good economic news

it has too do with refineries input and ouput


gas your pumping today, got brought to the gas station yesterday, and finished refining the day before


the oil they used they bought a few months ago, it takes 4 weeks to reach the refiner, and then they store it until they need it, and obvoiously they keep a hefty inventory

plus, refiners are always behind on the way up, and they make it up on the way down, just typical biz

i understand price raises to "replacement" cost on goods, but it sure the hell goes up faster than coming down. with the way it works, you'd think it could go oppisite. the oil they sit on cost less, not more...the replacement oil cost's more, but that'll change in the next 10 min's. just frustrating to see it raise on the net, in my office and on the way home, it's up .05....ofcourse, it's DOWN on the morning news and the shyt stays up! replacement cost's do not factor so fast in my experience (expescially when your dealing with existing inventorie's, both, at the station and at the refinery!)

[trip]

Re: some good economic news

when there cost goes up, they cannot raise prices fast enough to stay profitable or else demand would drop like a rock and they'd have too much inventory

thus they make it up on the downside, because demand will stay steady or rise as it goes down

the problem is at high prices your focused on every penney, when it was a buck fifty no one paid much attention to a dime fluctation

[trip]

Re: some good economic news

cats outta the bag, i'll talk more later on today

since the year 2000 the purchase of futures contracts on oil has gone up 1,000%

now have we had a 1,000% increase in business's based on the need for those commodites?

nope

futures makrets are set up for large buyers and sellers of common products such that they can project future consumption for production

when you have tsunami of folks who jump in the ring with no need for the product you get imbalance in the market and over time the balance can tip in the wrong direction

i'll explain more fully how it happens this weekend, it's actually pretty easy for it too happen