http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3914794Oh my.
I thought everything was going to be strawberries-and-cream after January 20, 2009.
The primitives promised.
One wonders what's up with that.
Purveyor (1000+ posts) Tue Jun-09-09 03:11 PM
Original message
$70 Oil Menaces Budding Recovery
NEW YORK (CNNMoney.com) -- Two weeks change a lot in the oil markets.
At the end of May CNNMoney.com ran a story asking if $60 oil will kill any economic recovery. 'No," most analysts said - consumers could shoulder $60 crude, and analysts didn't see prices going much higher.
Now oil is touching $70 a barrel. Goldman Sachs recently said it sees crude at $85 by the year's end. With the economy still on life support, oil is drifting dangerously close to being the wet blanket at the recovery's party.
Many say consumer spending - which accounts for over two thirds of the nation's economic activity - takes a big hit when crude hits $100 and gas $3 a gallon. Some say it's more like $125 crude and $4 gas. Others say that during a recession $80 is the breaking point.
But putting a number on it is almost beside the point. The higher it goes, the more it hurts.
Read more: http://money.cnn.com/2009/06/09/news/economy/oil_prices...
liberal N proud (1000+ posts) Tue Jun-09-09 03:14 PM
Response to Original message
1. It contributed to the recession in a big way
And now they are going to drive the price up and dive the country deeper into the depression.
But I thought.....and you know, the primitives promised.
AndyA (1000+ posts) Tue Jun-09-09 03:21 PM
Response to Reply #1
4. And where is Congress and Obama on this?
Oil is not in short supply right now. In fact, they've run out of places to store it!
Someone needs to identify who is manipulating the price...something tells me the parties responsible are also likely getting taxpayer bail out money, too.
phantom power (1000+ posts) Tue Jun-09-09 03:17 PM
Response to Original message
2. For what it's worth...
This is exactly the behavior predicted by the Bumpy Plateau of Peak Oil. Last year, oil prices spiked. Hard. Not too long after that we get hit with an economic implosion. From here on out, every time the economy starts to expand, it will get its head cut off by a corresponding oil price spike.
Most human economic activities currently require oil, or one of its derivatives.
I dunno.
Maybe George Soros, who has a lot invested in oil, has something to do with it.
DJ13 (1000+ posts) Tue Jun-09-09 03:18 PM
Response to Original message
3. nation's economic activity - takes a big hit when crude hits $100 and gas $3 a gallon
Theres the rub.
Gas is ALREADY at $3 per gallon, while the price of crude is less than half of its prior high at $69 per barrel.
The price of gas has decoupled from the price of crude.
At $100 oil the price of gas could conceivably be near the prior national record of nearly $4.50 per gallon at this rate.
Hmmm. And franksolich is scratching his head, wondering how such a thing could be done, or even possible. There are after all iron-clad unalterable natural laws of economics.....
Andy823 (1000+ posts) Tue Jun-09-09 03:27 PM
Response to Reply #3
6. You beat me to it.
I couldn't agree more. It makes no sense for gas to be so high, $2.93 today in my town, when oil is only $69 per barrel! It's the greed of the gas companies once again, and congress is doing nothing to stop it. Last year congress said they would do work on stopping the price rise by speculators, but it looks like that was simply a talking point for the election cycle, and now wall street, and big oil are once again trying to screw the public so they can make huge profits!
Congress needs to get tough as hell on this issue, put tough regulations on buying oil and stock piling it, and then trying to manipulate the prices up! If the democrats in congress don't start working on things like this they risk losing seats next year. If they get off their butts, and start really working for the people of this country, we can "increase" seats. This issue, along with health care, should be rallying points for the democrats, and if they do something about these issues, they will benefit greatly in the next election. The only questions is will they?
notesdev (1000+ posts) Tue Jun-09-09 03:25 PM
Response to Original message
5. Dumb headline writing strikes again
Should read something more along the lines of "Devaluation of US dollar menaces nonexistent but we are paid to make you believe it is budding recovery".
Oil priced in dollars is going to go up or down on the value of the dollar. The currency movement is the cause, the commodity prices are the effect.
