Deleted
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Post by Deleted on Apr 26, 2011 10:31:29 GMT -5
The price of gas is jumping because of speculators thinking we MIGHT have a shortage some time in the future. Grrrrrr! Isn't there some way to keep them out of it?!?!?!?!
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Bob Ross
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Post by Bob Ross on Apr 26, 2011 10:34:44 GMT -5
Here's the thing I don't get. In the summer of '08, the price of a barrel of oil peaked at ~$145 and gas in my area was $4 / gallon. Now oil is ~$112 per barrel and gas in my area is $4 / gallon. Hmmmm.
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SVT
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Post by SVT on Apr 26, 2011 10:37:44 GMT -5
Yeah, it seems odd but there are other factors that influence the price of gas.
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Bob Ross
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Post by Bob Ross on Apr 26, 2011 10:40:41 GMT -5
Yeah, it seems odd but there are other factors that influence the price of gas. I know, plus I'm no expert, and every "expert" has their own theory. TBH I've no idea what's true and what's not. Normally I'm a proponent of supply / demand and free market forces but in this case I really have to wonder. < dons tinfoil hat >
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Deleted
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Post by Deleted on Apr 26, 2011 11:04:17 GMT -5
Here's the thing I don't get. In the summer of '08, the price of a barrel of oil peaked at ~$145 and gas in my area was $4 / gallon. Now oil is ~$112 per barrel and gas in my area is $4 / gallon. Hmmmm. Google the oil glut in Cushing and its effect of keeping down WTI.. What you see for WTI is not what the rest of the country is paying for crude. It is probably at a $15 discount right now.
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8 Bit WWBG
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Post by 8 Bit WWBG on Apr 26, 2011 11:10:04 GMT -5
My heart just goes out to those who truly cannot absorb the difference. For many of us here, yes it stinks, and yes we have to make cuts, but it doesn't break us. There are people who (especially if it hits $5/gallon or $6/gallon) will not be able to drive, and will be in a very tough position.
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Deleted
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Post by Deleted on Apr 26, 2011 11:14:19 GMT -5
My heart just goes out to those who truly cannot absorb the difference. For many of us here, yes it stinks, and yes we have to make cuts, but it doesn't break us. There are people who (especially if it hits $5/gallon or $6/gallon) will not be able to drive, and will be in a very tough position. You can say that again. My wife and I were having this exact conversation this past saturday since we had to drive to Long Island to see her mom and NJ to see my mom. We are mad that gas is high, we will just cut elsewhere but some people were already close to the edge.... this will just push them over.
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Small Biz Owner
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Post by Small Biz Owner on Apr 26, 2011 11:26:50 GMT -5
Since the FED has printed even more money, it takes more dollars to buy that oil, and gas. Silver up 400% Gold up 100% Oil up 100% all in just 2 years or so. Has that long feared inflation factor finally arrived?
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Deleted
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Post by Deleted on Apr 26, 2011 11:35:09 GMT -5
Will Americans FINALLY embrace small cars. It seems many of us take it as a Constitutional right that we can buy whatever size vehicle we want even if it kills us every time gas prices go up and buy houses 40 miles from their job so they can get 3000 sq ft. People dream of the $1/gallon they remember 14-15 years ago when oil prices crashed and investment in new capacity fell off a cliff.
People need to wake up and think very carefully as they make their next vehicle purchase. They also need to think about where they should be living. You may feel that fuel costs are out of your control, but that is not true in the long run. Maybe there is nothing you can do today, but make smart future decisions that will put you in control in the future.
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whoisjohngalt
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Post by whoisjohngalt on Apr 26, 2011 11:44:59 GMT -5
Riiiigghhhttt, bc that's exactly what I want - my entire life choices to evolve around gas prices Lena
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Deleted
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Post by Deleted on Apr 26, 2011 11:59:50 GMT -5
Riiiigghhhttt, bc that's exactly what I want - my entire life choices to evolve around gas prices Lena It's not what I want, but what I spend on gas doesn't get spent on travelling, painting or savings for retirement.
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Deleted
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Post by Deleted on Apr 26, 2011 12:02:06 GMT -5
Since the FED has printed even more money,
Your Fed printing money does not explain why the gas prices in Canada are going up. That should actually make prices go down for me as our dollar is higher than yours.
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Deleted
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Post by Deleted on Apr 26, 2011 12:08:16 GMT -5
Riiiigghhhttt, bc that's exactly what I want - my entire life choices to evolve around gas prices Lena People can do whatever they want as long as they don't bitch about the consequences of those choices or look to the government to bail them out.
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Deleted
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Post by Deleted on Apr 26, 2011 12:08:40 GMT -5
If it truly is speculation, the bubble will probably be big, but short lived. Once it pops, it will go back down to "normal"
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raeoflyte
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Post by raeoflyte on Apr 26, 2011 12:12:28 GMT -5
Will Americans FINALLY embrace small cars. It seems many of us take it as a Constitutional right that we can buy whatever size vehicle we want even if it kills us every time gas prices go up and buy houses 40 miles from their job so they can get 3000 sq ft. People dream of the $1/gallon they remember 14-15 years ago when oil prices crashed and investment in new capacity fell off a cliff. People need to wake up and think very carefully as they make their next vehicle purchase. They also need to think about where they should be living. You may feel that fuel costs are out of your control, but that is not true in the long run. Maybe there is nothing you can do today, but make smart future decisions that will put you in control in the future. Every time that I have moved or bought a home near my job, said job has gone away or transferred me to an office across town. When you have a 2 income household, the chances of both people having jobs close to home becomes even more complicated. I prefer to buy a home close to things that change less often (my family, neighborhood), and hopefully with decent public transportation options if needed.
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whoisjohngalt
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Post by whoisjohngalt on Apr 26, 2011 12:18:21 GMT -5
That one of the things that you will NEVER find me doing. I was raised with "personal responsibility" as my middle name.
Lena
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Deleted
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Post by Deleted on Apr 26, 2011 12:20:54 GMT -5
Will Americans FINALLY embrace small cars. It seems many of us take it as a Constitutional right that we can buy whatever size vehicle we want even if it kills us every time gas prices go up and buy houses 40 miles from their job so they can get 3000 sq ft. People dream of the $1/gallon they remember 14-15 years ago when oil prices crashed and investment in new capacity fell off a cliff. People need to wake up and think very carefully as they make their next vehicle purchase. They also need to think about where they should be living. You may feel that fuel costs are out of your control, but that is not true in the long run. Maybe there is nothing you can do today, but make smart future decisions that will put you in control in the future. Every time that I have moved or bought a home near my job, said job has gone away or transferred me to an office across town. When you have a 2 income household, the chances of both people having jobs close to home becomes even more complicated. I prefer to buy a home close to things that change less often (my family, neighborhood), and hopefully with decent public transportation options if needed. People in your situation can help themselves by shrinking vehicle size or considering public transportation. Unfortunately, the farther one lives from their job, the more unworkable that becomes. The more transfers in public transportation, the more wasted time.
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Small Biz Owner
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Post by Small Biz Owner on Apr 26, 2011 12:27:53 GMT -5
Not this American.
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philly1
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Post by philly1 on Apr 26, 2011 12:29:55 GMT -5
Riiiigghhhttt, bc that's exactly what I want - my entire life choices to evolve around gas prices Lena People can do whatever they want as long as they don't bitch about the consequences of those choices or look to the government to bail them out.
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fairlycrazy23
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Post by fairlycrazy23 on Apr 26, 2011 12:29:58 GMT -5
Here's the thing I don't get. In the summer of '08, the price of a barrel of oil peaked at ~$145 and gas in my area was $4 / gallon. Now oil is ~$112 per barrel and gas in my area is $4 / gallon. Hmmmm. Google the oil glut in Cushing and its effect of keeping down WTI.. What you see for WTI is not what the rest of the country is paying for crude. It is probably at a $15 discount right now. Can't get the oil out of Cushing very fast.
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raeoflyte
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Post by raeoflyte on Apr 26, 2011 12:31:28 GMT -5
MMC--I think you're simplifying things. We already drive a small fuel efficient car. I'm not complaining about gas prices, but I am looking at other options as they continue to rise. I will probably get a bus pass to use to and from work (along with my bike) and also to visit family that are far away.
But even the bus prices go up because of the cost of gas. When I took the bus last week, a one way trip is $2.25. If I were to ride the express, one way is $4.00. I haven't looked at what a monthly bus pass will cost me, but it's not going to be pretty.
There are people that are out of ways to cut costs, and that is who will be most affected.
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Deleted
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Post by Deleted on Apr 26, 2011 12:38:19 GMT -5
MMC--I think you're simplifying things. We already drive a small fuel efficient car. I'm not complaining about gas prices, but I am looking at other options as they continue to rise. I will probably get a bus pass to use to and from work (along with my bike) and also to visit family that are far away. But even the bus prices go up because of the cost of gas. When I took the bus last week, a one way trip is $2.25. If I were to ride the express, one way is $4.00. I haven't looked at what a monthly bus pass will cost me, but it's not going to be pretty. There are people that are out of ways to cut costs, and that is who will be most affected. I'm not sure how one "simplifies" things when they actually talk about root problems.. "Drill baby Drill" and "tax the rich fat cat oil CEO's" are simplifying things. I'm talking about things that can help balance the supply/demand equation from the demand side. Someone else can take the supply side if they want and everyone else can talk about how speculators are ignoring both of them. For people out of options now - how many made bad choices in the past? Time to hold people accountable. Did the last oil spike teach people nothing?
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Deleted
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Post by Deleted on Apr 26, 2011 12:38:28 GMT -5
Why not complain about gas prices? We have a system that has made us as a society dependant on gas. The law of supply and demand is only valid if the demand is not coerced by all of our systems.
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Deleted
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Post by Deleted on Apr 26, 2011 12:59:59 GMT -5
Why not complain about gas prices? We have a system that has made us as a society dependant on gas. The law of supply and demand is only valid if the demand is not coerced by all of our systems. Going to slightly alter a sentence of yours: We have a system that has made us as a society a bunch of whiners.
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raeoflyte
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Post by raeoflyte on Apr 26, 2011 13:06:12 GMT -5
My reason for saying you are simplifying matters is because moving closer to work or buying a smaller car will not alleviate many peoples issue with gas prices.
Gas prices are high, and people will figure a way to deal with it. I don't watch the news much, but I don't think they're going to start handing out gas cards with food stamps, so people will make do.
Thankfully I'm not on the edge, so we'll absorb the cost, cut else where and get reacquainted with alternate forms of transportation. Moving closer to work isn't an option (upside down), and buying a hybrid car (the only thing that would get better mileage than we have) wouldn't be an option either.
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Deleted
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Post by Deleted on Apr 26, 2011 13:11:57 GMT -5
Let me toss this out there.. The wars in the middle east have been all about oil. Obvious to most - a few will disagree. It is NOT about us actually taking their oil, which far too many like to argue. We do our thing in the middle east to keep the world market well supplied to keep prices "reasonable".
A big problem is, we haven't priced this action into our local gas prices though increased taxes. We have borrowed money to support our activities instead. Not the end of the world when the deficit is a low percent of GDP, but enter the recession and the cost of "doing business" in the middle east is biting hard. The fed responds by taking action that weakens the dollar which drive up commodity prices.
Now this is a hardship since it is a sudden change. If the government would have installed an extra gas tax during the 1st gulf war and continued to ramp it up, people would have gradually considered more efficient vehicles. Greater efficiency = lower demand = the potential to mitigate events. By avoiding extra taxes 20 years ago, we run up our deficit AND are still in a position of high prices.
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Deleted
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Post by Deleted on Apr 26, 2011 13:18:57 GMT -5
My reason for saying you are simplifying matters is because moving closer to work or buying a smaller car will not alleviate many peoples issue with gas prices. You may have overlooked this part of what I said: "You may feel that fuel costs are out of your control, but that is not true in the long run." In the LONG RUN.. That means that trading in a 5 year old 22MPG paid off car may not make any economic since to get 35MPG, you'd have to take on a $400/mo payment for 5 more years. But by taking the long view on how to better handle these problems, you instead look to the next car purchase when this current car is busted. You look for the next job change to either find something closer to home or as a catalyst to move closer to work. Most people get into money problems because they only consider the short term.. "I can afford this $800/mo car payment easily" when their company continues to downsize.. "I can afford this $3000/mo mortgage payment" when their spouse has a history of layoffs.. And lastly, "I can afford this 14MPG SUV" when gas prices are $2.25..
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raeoflyte
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Post by raeoflyte on Apr 26, 2011 14:50:13 GMT -5
""I can afford this $800/mo car payment easily" when their company continues to downsize.. "I can afford this $3000/mo mortgage payment" when their spouse has a history of layoffs.. And lastly, "I can afford this 14MPG SUV" when gas prices are $2.25.."
When fighting these attitudes I agree with you. I just don't feel like everyone, or even most people have this attitude anymore. The prices affect responsible people, maybe even more so, because you can let the $800 a month gas guzzler SUV be repo'd and get a smaller car payment on a more fuel efficient car (at 1000% interest of course, but you would still probably end up ahead).
I will also never buy a home 'because it's close to work' as a main selling factor. It's never worked out for me, and I just can't believe that I would be at the same office (even if it is the same company) for 10 years.
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Deleted
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Post by Deleted on Apr 26, 2011 14:55:14 GMT -5
Why not complain about gas prices? We have a system that has made us as a society dependant on gas. The law of supply and demand is only valid if the demand is not coerced by all of our systems. Going to slightly alter a sentence of yours: We have a system that has made us as a society a bunch of whiners. Oh get real. It is not whining to recognize a system that is out of whack and work to change it. And the start of that is to be talking about it. You people are talking like running our cars is the only thing affected. Food prices are increasing (and they haven't even passed on all the increased costs yet) as well as most goods and services.
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Apr 26, 2011 15:34:01 GMT -5
The price of gas is jumping because of speculators thinking we MIGHT have a shortage some time in the future. Grrrrrr! Isn't there some way to keep them out of it?!?!?!?! Why might they think that? I mean we've only got a President and a regime that let Shell spend $4 billion dollars on oil leases in Alaska but denied them the permits to drill over concerns about "emissions", We've only got a regime whose leader talks about taxing and punishing oil companies every time he opens his mouth-- who do you think pays those taxes? We've only got a regime that has stiffled domestic energy exploration, production, and refining at every turn-- we've only got an administration with a completely incoherent foreign policy vis a vis the middle east where we get a lot of our oil. Don't blame the oil companies and traders for Jimmy Carter's second term. Blame Democrats.
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