Fox explains why presidents don't controll gas prices :palm:

Onceler said:
No, but you're shooting from the hip, and trying to create a cookie cutter cause for something that is clearly much more complex than that...
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I have made no claim for "cause".....I've merely pointed out the coincidence between the lifting of production restrictions and the drop in the price of oil......I would like to see if that coincidence could be repeated......since we've already had a thread in which liberals insisted they weren't opposed to drilling, I suspect reinstating the restrictions must have been an accident.....therefore, we have nothing to lose by removing the restrictions again.....who knows, the price might coincidentally drop.......
 
PostmodernProphet said:
I have made no claim for "cause".....I've merely pointed out the coincidence between the lifting of production restrictions and the drop in the price of oil......I would like to see if that coincidence could be repeated......since we've already had a thread in which liberals insisted they weren't opposed to drilling, I suspect reinstating the restrictions must have been an accident.....therefore, we have nothing to lose by removing the restrictions again.....who knows, the price might coincidentally drop.......
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I have no issue w/ removing the restrictions, but you're misportraying the relationship of cause & effect with regard to them in this case. It's undermining whatever point you're trying to make.
 
PostmodernProphet said:
I don't include speculators within the concept of "demand".......they create a false market......

I would not agree that the dissipation of that false market had anything to do with causing the 2008 recession.....
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You clearly have no clue why speculators trade.

Trading futures contracts allows transportation companies to lock in prices on oil so they know what their costs will be and can hedge if they think prices are going higher/lower. Same for farmers with grain. The speculators are seen as some big boogeyman... in reality... every single purchase we make of homes, stocks, bonds, CDs, mutual funds etc... is speculation. We base our buys and sells based on our expectations of the future, while being cognizant of the present.

Can speculation get out of control and push prices too high or too low? Absolutely... we saw it with Oil in 2008. We have seen it with tech/telecom stocks in 1999. We have seen it in real estate/gold/bonds etc... Too much of a herd mentality will lead to bubbles and then bursting bubbles.

I could care less what you agree with. It is a fact. Neither your opinion nor mine will change that fact. There is no way... and I do mean no way... that talk of opening up more drilling would lead to the volatility we saw in 2008 oil prices. No way. It was the speculation that oil prices had peaked. That the world economy was about to retract, thus creating lower demand, that is what drove prices down so rapidly. Add in the fact that speculators who had taken on too much margin, couldn't afford a big drop without subsequent margin calls got caught. They were then forced to sell massive positions and the price plummeted.

Side note: some of the biggest speculators in oil... were the big banks.
 
PostmodernProphet said:
I have made no claim for "cause".....I've merely pointed out the coincidence between the lifting of production restrictions and the drop in the price of oil......I would like to see if that coincidence could be repeated......since we've already had a thread in which liberals insisted they weren't opposed to drilling, I suspect reinstating the restrictions must have been an accident.....therefore, we have nothing to lose by removing the restrictions again.....who knows, the price might coincidentally drop.......
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Yes, it was coincidence in part, the announcement would have had some affect on pricing... but not to the extent that we saw. You are taking 1000 piece puzzle, pulling out one piece and proclaiming that one is the entire puzzle.
 
LOL, Fox righties claimed that presidents don't control gas prices in 2008...now JPP Righties pretend that Obama does...


[video=youtube;UzEnKdBAb_o]http://www.youtube.com/watch?feature=player_embedded&v=UzEnKdBAb_o[/video]
 
Superfreak said:
You clearly have no clue why speculators trade.
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perhaps.....my assumption was they wanted to profit......

Trading futures contracts allows transportation companies to lock in prices on oil so they know what their costs will be and can hedge if they think prices are going higher/lower. Same for farmers with grain.
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neither would be speculators.....
 
Superfreak said:
Yes, it was coincidence in part, the announcement would have had some affect on pricing... but not to the extent that we saw. You are taking 1000 piece puzzle, pulling out one piece and proclaiming that one is the entire puzzle.
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sweet.....it's time to pull out that piece again.....
 
Well, JPP Righties....was Fox lying then, or are you lying now?

[video=youtube;UzEnKdBAb_o]http://www.youtube.com/watch?feature=player_embedded&v=UzEnKdBAb_o[/video]
 
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