Got Gas? U.S. Economy to Worsen as Gas Prices Skyrocket

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mshan

Diamond Member
Nov 16, 2004
7,868
0
71
I am trying to respectfully argue that your "baseline" for comparison, in terms of economic improvement or decreasing unemployment, is wrong, and that talking heads on tv are cherry picking data to "prove" whatever talking point they are trying to push on their viewers at any given time.

People saying he is responsible for gas at $1.85 the day before he was inaugurated or persistently high unemployment and all of these jobs lost (how many were essentially illusory bubble jobs in construction - someone said something like 4% of unemployment rate is construction workers) are his fault, when he hadn't even been president for 1 minute yet.

His dilemma is no one gives him credit that it is not as bad as it could have been (second Great Depression with 25% unemployment). Plus Republicans more interested in obstructing government so economic recovery (which is already occurring) is held down till after next November, then when economic recovery becomes readily apparent to all, take credit for all the heavy lifting Obama has already done.

I believe economy has been producing 150,000 private sector jobs / month for last year, but those numbers are damped down by so many layoffs at state and local level because Republicans are blocking temporary aid to states. Plus, given growth in population, you need at least 200,000 jobs / month created to start having unemployment rate decline (some talking head on CNBC said that would probably occur next year, so unemployment rate would start down on a prolonged, gentle glidepath).

Of course, if the jobs deficit baseline is peak of economic and financial bubble in say August 2008, then off course Obama is a failure.

But careful analysis reveals a much different story... (if Obama doesn't get re-elected next November, people will try and spin story that his presidency was a failure, yet he was like George H. W. Bush, who did all of the heavy lifting (cutting spending and raising taxes) that set foundation for economic prosperity and budget surplus and jobs creation that Bill Clinton gets credit for.






But former Bush speechwriter Matt Latimer wrote in an upcoming book (excerpted by GQ) that, even hours before he gave an address promoting the TARP, Bush fundamentally misunderstood what the program was all about:

Under his proposal, he said, the federal government would buy troubled mortgages on the cheap and then resell them at a higher price when the market for
them stabilized. “We’re buying low and selling high,” he kept saying. The problem was that his proposal didn’t work like that…As it turned
out, the plan wasn’t to buy low and sell high. In some cases, in fact, Secretary Paulson wanted to pay more than the securities were likely worth in order to put more money into the markets as soon as possible.
[...]

In the theater, the president was clearly confused about how the government would buy these securities. He repeated his belief that the government was
going to “buy low and sell high,” and he still didn’t understand why we hadn’t put that into the speech like he’d asked us to. When it was explained to him that
his concept of the bailout proposal wasn’t correct, the president was momentarily speechless. He threw up his hands in frustration. “Why did I sign on to this
proposal if I don’t understand what it does?” he asked.

The proposal that Bush offered that night would ultimately be rejected by the House of Representatives, with a slightly modified bill passing one week later. And it should come as no surprise that Treasury Secretary Hank Paulson ultimately abandoned the idea to buy toxic assets entirely, instead opting for bank recapitalization, devoid of meaningful strings for the banks. As Latimer reported it, “the treasury secretary didn’t seem to know [which course of action he favored], changed his mind, had misled the president, or some combination of the three.”

http://webcache.googleusercontent.c...g+high&cd=1&hl=en&ct=clnk&gl=us&client=safari
:rolleyes:
 
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Engineer

Elite Member
Oct 9, 1999
39,230
701
126
Gas Prices the day BEFORE Obama took office: $1.85 per gallon.

http://news.consumerreports.org/cars/2009/01/gas-prices-2.html

and?

Gas was $0.49 per gallon in Corbin, KY in 1998 when Clinton was in office. Does that mean Bush more than tripled gas prices? Oil was $10.xx per barrel then.

President doesn't set oil prices...those with money do (same with the economy really) and they are speculating oil prices higher and higher. Oil usage in the US is down 6%+ from it's high in 2006 yet prices are....well....higher. You figure it out.
 

mizzou

Diamond Member
Jan 2, 2008
9,734
54
91
Oil usage in the US is down 6%+ from it's high in 2006 yet prices are....well....higher. You figure it out.


What's aweosme about this is that nobody thought it possible. We CAN reduce consumption, makes me all warm inside.
 

Londo_Jowo

Lifer
Jan 31, 2010
17,303
158
106
londojowo.hypermart.net
Gas prices drop 5 cents across Texas

As Thanksgiving approaches, the average price for gas in Texas has declined. AAA Texas on Tuesday said the current statewide average is $3.17, down 5 cents from last week. The national average for gasoline is $3.35, four cents less than last week. The association says the most expensive gas average in Texas can be found in Texarkana at $3.22 a gallon. The least expensive average can be found in Corpus Christi at $3.10. AAA Texas says the average distance Texans travel for the holiday is expected to be 959 miles roundtrip. The group says nearly 3.3 million Texans will travel 50 miles or more from home for the holiday, a 5 percent increase in total Thanksgiving travel compared to last year.


http://www.msnbc.msn.com/id/45400074/ns/local_news-houston_tx/#.TsuvS5TNlGU


4 stations close to where I live are still below $3.00/gal

http://www.houstongasprices.com/Shell_Gas_Stations/Sugar_Land/113096/index.aspx
 

Engineer

Elite Member
Oct 9, 1999
39,230
701
126
Are you an illegal alien? I only ask because you are obviously a cherry picker.

You're not nearly as cute as you think you are.

That still does not address the original premise that the President does not effect the oil prices nearly as much as the money people do, especially when there are no new wars or something similar (geopolitical) going on..... (and I'll admit 100% that I was wrong when I accused Cheney of helping drive up oil prices from the Bush years).
 

airdata

Diamond Member
Jul 11, 2010
4,987
0
0
$2.99 today... I was surprised to see it pass the $3 mark. The last few times it has gotten close it will fluctuate by 1-2c and then go back up.
 

dmcowen674

No Lifer
Oct 13, 1999
54,889
47
91
www.alienbabeltech.com
11-22-2011

http://finance.yahoo.com/news/oil-p...BzdGNhdANob21lBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3

Oil price up on Mideast strife, Europe debt plan


Oil prices rose Tuesday on concerns that Middle East strife could disrupt supplies and on hopes that Europe's debt crisis wouldn't lead to worldwide financial gridlock.

Oil prices rose on worries that new international sanctions on Iran would reduce the flow of oil from the world's fourth biggest oil producer. Also large, violent protests in Egypt stirred fears that upheaval in the region could spread and disrupt supplies. Egypt is not a major oil producer, but it does control important energy supply lines and wields considerable influence in the region.

Mild weather forecast for much of the U.S. over the Thanksgiving weekend is expected to motivate drivers to hit the road to visit families and shop. The price of gasoline futures rose nearly 3 percent

Gasoline demand has been falling in the U.S. for the past several months.
 

cybrsage

Lifer
Nov 17, 2011
13,021
0
0
You're not nearly as cute as you think you are.

I know, I am cuter. Wan have ghey sechs nao?

That still does not address the original premise that the President does not effect the oil prices nearly as much as the money people do, especially when there are no new wars or something similar (geopolitical) going on..... (and I'll admit 100% that I was wrong when I accused Cheney of helping drive up oil prices from the Bush years).

What original premise? I was simply stating a fact. However, Obama did start a war for oil in Libya.

Personally, I have no problem with waging a war to ensure the flow of a vital national resource. If you cannot use the military to ensure the survival of your economy then what use is it?
 

Ninjahedge

Diamond Member
Mar 2, 2005
4,149
1
91
I think that these waves in the oil market are being deliberately generated to allow "savvy" investors the opportunity to ride them and generate a profit on an otherwise stagnant and declining resource.....

It is all part of the game.
 
Oct 30, 2004
11,442
32
91
If memory serves, it's coming down to where it was 13 or 14 months ago, but it's still higher than it was before last year's late summer price hike (which is what started this entire thread).
 

Ninjahedge

Diamond Member
Mar 2, 2005
4,149
1
91
Screw the $$, I want to know %%s.

How much are the gas companies making off this?

I always get pissed when gas prices spike and never come back to where they were when oil prices (and other things) return to "normal".
 

dmcowen674

No Lifer
Oct 13, 1999
54,889
47
91
www.alienbabeltech.com
Woo hoo, gas dropped a whole 4 cents here.

Has been holding steady while rest of country reporting drops every week.

A Republican has proposed that Chicago be made 51st state because of so many things "out of step" with rest of the state and country.
 

guyver01

Lifer
Sep 25, 2000
22,135
5
61
Woo hoo, gas dropped a whole 4 cents here.

Has been holding steady while rest of country reporting drops every week.

why bother lying when it's just easy to prove you wrong

ch.gaschart
 

cybrsage

Lifer
Nov 17, 2011
13,021
0
0
Screw the $$, I want to know %%s.

How much are the gas companies making off this?

I always get pissed when gas prices spike and never come back to where they were when oil prices (and other things) return to "normal".

This is from 2007, I suspect it is still roughly correct today.

oiltax.bmp


After crude oil costs, gasoline taxes are the second largest contributor to the price paid at the pump. Together Federal and State excise taxes on fuel account for an average cost of approximately 62 cents per gallon. That's a combined tax of about 20% per gallon of gas.

The federal tax per gallon is 18.4 cents per gallon,
see the history of federal gasoline taxes here, and the state tax per gallon varies by state, see the complete list of state gasoline taxes here.

Average profit per gallon of gas for oil companies: 10 cents according to the EIA.

http://mjperry.blogspot.com/2007/05/gasoline-taxes.html
 

Svnla

Lifer
Nov 10, 2003
17,986
1,388
126
$2.93/gal for regular unleaded here.

With Europe in a big mess, China is slowing down, US is still stuck, demands are not high.

Dave, how is your $5/gal gas? :D
 

sportage

Lifer
Feb 1, 2008
11,492
3,163
136
Face it... We all knew/know why gas was $4 - $5 a gal during the GW/Cheney empire. Greed, fraud, market manipulation.
Today... with drawing down wars, along with fighting wars more smartly i.e. taking out leaders like Bin Laden, using drones, we have certainly stabilized gas prices over here.
But if you miss the Gw-OOD old days, you can always vote republican come the next election.
We all know too well how hard it can be to build something good, and how easy it is to destroy and make something bad.
I think about 8 years is about the time frame required.
Remember...? Remember...? Can you remember...?

While the media would have you think things have never been worse, actually they have never been better, considering. We are actually willing wars, gas prices are way down, people are working again, and black friday turned out to be a record breaking success.

And there are some people actually considering voting republican, again.
Silly silly people. Poor misguided people. Poor clueless saps... :D
 

blackangst1

Lifer
Feb 23, 2005
22,902
2,359
126
Screw the $$, I want to know %%s.

How much are the gas companies making off this?

I always get pissed when gas prices spike and never come back to where they were when oil prices (and other things) return to "normal".

Common knowledge. 4-7%. Pretty outragous, huh?
 

dmcowen674

No Lifer
Oct 13, 1999
54,889
47
91
www.alienbabeltech.com
Oil is back over $100 so I don't know gas continues to go down for the rest of the country except for Chicago.

11-28-2011

http://finance.yahoo.com/news/futures-rise-electronic-trade-europe-002540668.html

Stock futures signal sharp gains



U.S. oil company Anadarko Petroleum (NYSE:APC) said its major gas finds offshore Mozambique were actually twice as large as it earlier thought, adding support to hopes that East Africa will become another major gas production center.