so i am no sure why gas is low or if it will stay low or if it will ever go back up? here is my theory, say we can keep gas low? i am going to take the boating community as a example because i am a die hard boater and spend a majority of my summer on the river. anyways over the past few years since gas keeps going up the boaters have been slowly disappearing from our marina, most of our boats have 454s or larger or twin big blocks, very common so they all suck gas right? in my buddies 25' baja with a 502 it takes about 100 bucks in gas to go out boating for 1 night, at 4.15 a gallon thats about 25 gallons of gas, at 1.72 25 gallons cost 43 bucks. so if it is now a affordable thing to be doing then people start boating again, the more there are the more people that are going to be buying boats right? more people buying boats the more people are needed to build them, the more people they need to sell them, transport them, advertise them...... the more motors that chevy which is the standard for marine motors are needed..... the more trucks that are needed..... can you say domino effect? just something that simple just created a ton of jobs! i am sure you guys can come up with a billion different scenarios that the same thing will happen. i also think that if we get another stimulus check we all need to spend it on whatever, car parts maybe! dont use it for anything besides buying stuff that is not needed in your life, this is going to help get more demand for everything, same effect as i mentioned above. let me know what you guys think or maybe other examples, maybe my theory is crap?
i have a theory that would help fix this country
- Thread starter Silent viewer
- Start date
- Status
the reason gas prices fell has squat to do with supply, demand, or any other normal laws of economics. Coincidence it fell right about the time all the banks failed and the *markets* crapped out?
No. All of the commodity futures speculators bailed as that market crashed as well. If there was any more proof that prices were artificially inflated enron-style that was it.
Funny how gas was tied to crude prices and all the talk of production as well. Doesn't matter how many barrels you can pull from the ground, the capacity to make gasoline from it isn't there....
another
man I should quit doing this! 
No. All of the commodity futures speculators bailed as that market crashed as well. If there was any more proof that prices were artificially inflated enron-style that was it.
Funny how gas was tied to crude prices and all the talk of production as well. Doesn't matter how many barrels you can pull from the ground, the capacity to make gasoline from it isn't there....
another
man I should quit doing this! If gas prices stay low, more people will be willing to go on vacation more often and have more money to spend on other things. Us car guys will have more money to put into are cars and will also be able to go to the track more often.
People spending money is not the only problem. The problem is that we have depended on cheap credit for so long and now we are paying for it. This collapse is really a perfect storm of factors coming together at the same time. The housing bubble collapsed when everyone was using short term ARMs to finance their houses. They can no longer refinance at a lower rate because equity disappeared, and they are being foreclosed on at a rate higher than the banking industry can bear. This is because of speculators building too many houses as short term investment vehicles rather than as places to live. At the same time, Oil speculation drove the prices of everything up just when people were struggling to pay their mortgage. Now no one has any money or liquidity to spend because the cost of living has risen too fast with respect to real net income. Now the government is probably going to start printing money which will further devalue the dollar and real income. It's a bad situation with no quick fix. Even with cheap fuel most people are still struggling to make ends meet because of the other factors which are driving inflation. No one is now able to afford to buy the toys, let alone use them.
my theory was a way to help and what something so simple can do to cause a chain of good things, not who to blame! the sooner we quit pointing fingers is the sooner we get our butts out of this mess!
regalman4925 said:
You cant have the Fed issue more funny money via 'rebates' to fix things. Yes it will temporarily give the economy a jolt but in the longer term it will lead to inflation and dollar devaluation. The only way 'fix' this is to let the free markets correct themselves in time w/o the Fed or .gov making our fiat currency system worse.
And back in July, Lindsay Williams predicted that oil would drop to $50 per barrel to bankrupt the Arab nations. I thought he was nuts! Now whether his inside info was correct or he was just lucky, he still was right.
Im just glad I had no money to start with and dont own a house. Now that gas prices are down, the little money I have, I can spend on other things besides just gas. I know that is not the same situation for other people, but I am lucky the shitty economy is really not effecting me at all, I just keep having little money. The only bad part for me is that I have to keep my crappy job delivering pizza, because their is not many places hiring right now.
Let's get something straight here....oil and gasoline plummeted as soon as there was a hint of a global recession....less use (demand) for oil. The price of crude has dropped from $147 to $50. Japanese exports to China FELL last quarter....unheard of. China was booming.
They started to fall after the future traders jacked the price up so much it was unsustainable for the whole economy. Unless they close the 'Enron loophole' it'll happen again too. The economists thought that once oil dropped to $50 a barrel everyone would run out and buy a new SUV or truck.. but guess what, it ain't happening! People might be wising up to the artificial market perversion BS and living within their means thus the economy is contracting.
- Status
Similar threads
