Sheriff
Admin
3939 posts
 author
|
 posted 8/31/2005 9:29:33 AM
 reply
Here's a quote:
"Boy, did reality set in yesterday! Back on Monday they had put on a brave face, showing they weren't afraid to buy a dip on an event driven downturn [Katrina]. But Yesterday as more and more damage was discovered, and the reality of all those refineries being shut down, they started to get a bit more nervous. I don't blame them.
I know that the common thinking on the street is that oil isn't nearly as important in our society as it once was, and therefore we should be able to weather this oil shock. Well, that's all fine and dandy blather, but it's wrong. Just because we aren't the manufacturing society we once were, the fact is that just about everything we buy has an oil component. From the vinyl on our homes, to the CD's and DVD's we play to you name it. But that's only half the problem. See, when we went from a manufacturing society to a consumption ( debt) society, we shifted the demand for gas, oil, diesel, etc to the delivery side of the equation. Nothing gets anywhere without oil. Not your food, clothes, electronics, nothing. Yet this is no problem? Wrong.
Right now, crude is up another 45 cents. It's over 70 a barrel. Gasoline is up another 8 cents a gallon. On Monday gas at my local station was 2.57. On Tuesday it was 2.63. Today they say it will be 2.66. It could be 2.95 by the weekend. Yet this is not a problem? I must live under a rock with the algae and slime, because everyone I know is not only upset, they are concerned. My buddy Jim drives your standard Chevy Pickup. It's got a pretty big 8 cyl. engine for toting his roofing materials around. It costs him about 85 bucks a week now to get to his jobs. Last year it was 45. Who makes up the difference? That's not to even mention when the first heating oil trucks start rolling next month. Wait till they get that bill.
I guess you get the picture. The Street is lying. Greenspan is lying. This is hurting people, and it's going to get worse. The effect on the economy is going to be substantial. So, for now they can put on their brave faces and make believe that we should be buying stocks. The effects of all this hasn't made it through the system yet. But I assure you it will. And then buying overpriced stocks won't make a lot of sense.
InvestYourself.com Daily Post, August 31 2005
|
New Topic
