kentuck
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Wed Jul-16-08 10:50 AM
Original message |
The drop in the price of oil in the last 2 days proves one thing. |
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The price is tied to speculation on the market. It has nothing to do with supply or demand or any new oil wells or refineries. It is pure speculation. So why have the oil prices dropped?
Some may have come to the realization that their greed and speculation is killing the goose that laid the golden egg? Their actions are greatly influencing the inflation and the prices of all products in this country. Yes, they can drive up the price of oil to whatever they want without any reaction from the Congress or the Senate, not even a murmur. They are free to speculate to whatever heights they wish.
But the bad news has hit home. There are runs on banks. We have the highest inflation since 1981. People are being laid off at a rapid rate. Our manufacturing base is disappearing. But the oil speculators are making money hand over fist. Unfortunately, it appears the damage has already been done. We are in for a bad economic period for America.
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HereSince1628
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Wed Jul-16-08 10:56 AM
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1. A $6 one day drop against todays price isn't close to the percentage $6 represented |
Ganja Ninja
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Wed Jul-16-08 12:51 PM
Response to Reply #1 |
13. Yup, It could gain it back in one day. n/t |
Captain Angry
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Wed Jul-16-08 10:57 AM
Response to Original message |
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The stock market dropped quite a bit.
Sell high (the oil) to buy low (the stocks). It's how you make money.
Remove emotion and scheming, and look to the most likely answer. It's money chasing higher returns.
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kentuck
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Wed Jul-16-08 11:01 AM
Response to Reply #2 |
3. Isn't it still speculation?? |
Schema Thing
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Wed Jul-16-08 11:19 AM
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aspergris
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Wed Jul-16-08 11:20 AM
Response to Reply #2 |
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I've been a contrarian, and it's how I've built wealth through the market
Buy other's fear and panic, sell their euphoria.
Rinse, lather, repeat
Watch consumer sentiment for extremes, and fade them
Buy value, sell hype
and manage risk
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Speck Tater
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Wed Jul-16-08 12:00 PM
Response to Original message |
6. You are looking at the sloshing waves and ignoring the rising tide. |
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Of course speculation is the source of day-to-day small fluctuations in price. But the long-term, overall trend is driven by supply and demand.
To proclaim that you have isolated the "cause" of a long-term trend based on very short term fluctuations is just silly. It's like saying "Well, the last two days have been slightly cooler, so global warming is a myth."
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kentuck
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Wed Jul-16-08 12:16 PM
Response to Reply #6 |
7. You may be right but....? |
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when was the last time the price went down even a penny??
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Speck Tater
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Wed Jul-16-08 12:35 PM
Response to Reply #7 |
8. When did oil last go down? |
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Mid April, late April, mid May, early June, late June, mid July. http://futures.tradingcharts.com/old_hist_BC.html
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exothermic
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Wed Jul-16-08 12:38 PM
Response to Reply #8 |
9. How dare you ruin a perfectly good rant with facts! |
kentuck
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Wed Jul-16-08 12:39 PM
Response to Reply #8 |
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I guess it only seems like an eternity...Do you think it will continue to go down?
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Speck Tater
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Wed Jul-16-08 12:47 PM
Response to Reply #10 |
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that there's no way to know.
The only way we will EVER know for sure if the current price of oil is mostly supply and demand (my opinion) or mostly speculative bubble (the opinion of many others) is when we are looking at it in the rear view mirror. So the only rational thing for the average person to do is be patient and wait to see how it all plays out.
Some day we will know. Today, we don't know, we can only state our opinions. Only time will tell.
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kentuck
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Wed Jul-16-08 12:51 PM
Response to Reply #11 |
12. Should Congress ask questions of the speculators? |
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If it is mostly speculation, should we know about it??
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Speck Tater
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Wed Jul-16-08 01:18 PM
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15. I think congress should investigate ALL possible causes, including speculation. NT |
Ganja Ninja
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Wed Jul-16-08 12:54 PM
Response to Reply #10 |
14. Look at it this way, even if it does go down it ... |
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won't go below $100 a barrel.
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Sat May 04th 2024, 05:25 AM
Response to Original message |