I nominate Ironman262 for the stupidest post of the year. In fact anyone who supports such idiocy deserves to share the award.
I nominate Ironman262 for the stupidest post of the year. In fact anyone who supports such idiocy deserves to share the award.
luv2run wrote:
I nominate Ironman262 for the stupidest post of the year. In fact anyone who supports such idiocy deserves to share the award.
it is only march. school has not even gotten out.
you set the bar ironman262, but i think you may need to do even better to keep the crown.
The price of oil is a multi-faceted beast. In essence it does have a great deal to do with demand. However, demand is not as simple as people think. Demand is at the pump as people driving their 10-15 mpg SUVs fill up every other day. Demand is also in derrivatives, options, swaptions, and futures as investors flock to buy oil to hedge against a downturn in other markets. Thus, if a trader on wallstreet wants to buy oil, it impacts the price of oil as the trader has now increased demand by purchasing some quantity of oil.
The other major impact on oil pricing is the falling dollar. This is not demand, this is due to a weak economy. As the price of a barrel of oil is pegged to the dollar, if the dollar falls the value of oil doesn't. Thus, it takes more dollars to purchase the same amount of oil. For someone buying in Euros they will not notice as much of a difference as oil hasn't increased by as much.
If we really wanted to impact the price of oil, all the foolish individuals who believe they could afford 4,000 square foot houses using an adjustable rate mortgage that -gasp - shockingly reset at a higher rates would need to pony up and start paying their mortgages. Additionally, we would have to stop defaulting on credit card loans and on other lines of credit. This would allow the US Federal Reserve to stop lowering short term interest rates and weakening the dollar and instead raise the interest rate. However, as most of my fellow Americans believe money (cheap available credit that they don't need to repay) is a God given right, I foresee a drastic event in the US economy before a turn around is warranted. We're not there yet, and as such oil should continue to rise...
The price of oil is a multi-faceted beast. In essence it does have a great deal to do with demand. However, demand is not as simple as people think. Demand is at the pump as people driving their 10-15 mpg SUVs fill up every other day. Demand is also in derrivatives, options, swaptions, and futures as investors flock to buy oil to hedge against a downturn in other markets. Thus, if a trader on wallstreet wants to buy oil, it impacts the price of oil as the trader has now increased demand by purchasing some quantity of oil.
The other major impact on oil pricing is the falling dollar. This is not demand, this is due to a weak economy. As the price of a barrel of oil is pegged to the dollar, if the dollar falls the value of oil doesn't. Thus, it takes more dollars to purchase the same amount of oil. For someone buying in Euros they will not notice as much of a difference as oil hasn't increased by as much.
If we really wanted to impact the price of oil, all the foolish individuals who believe they could afford 4,000 square foot houses using an adjustable rate mortgage that -gasp - shockingly reset at a higher rates would need to pony up and start paying their mortgages. Additionally, we would have to stop defaulting on credit card loans and on other lines of credit. This would allow the US Federal Reserve to stop lowering short term interest rates and weakening the dollar and instead raise the interest rate. However, as most of my fellow Americans believe money (cheap available credit that they don't need to repay) is a God given right, I foresee a drastic event in the US economy before a turn around is warranted. We're not there yet, and as such oil should continue to rise...
Dreams become reality, my a$$. Letsrun is depressing