Did I miss something because I'm

[JLDickmon]

Okay, I was poking a little sarcastic fun at those "oil company conspiracy theorists" out there! So many are quick to blame the oil companies when the price goes up, then grow silent when the price drops! Who gets that credit?

Just having a little fun... ...while beating a dead horse

It really is a serious question though, if anybody feels lead to respond....

I said all along, the problem wasn't with a shortage of fuel, it was a shortage of fuel FUTURES.

The problem is, as you have seen recently with the mortgage industry, commodities futures only take so big of a bubble before it bursts. Plus, you had unscrupulous firms attempting to manipulate the market (..."our experts predict $150/barrel crude by October...")... well heck.. That fuels a run on futures, tightening up availabity, and raising the price.

Then Obama stepped on his weiner.. "the problem isn't that gas is $4.00/gallon, it's how fast it got there"
No, Dorkchop, the problem WAS that gas was $4.00 per gallon...

 

[95_stroker]

Then Obama stepped on his weiner..

I missed that one, got a video clip of it???

 

[DaveBen]

Dogman's response was serious and I agree with him. The market and demand causes the prices to fall and raise. Simple economics (with a little politics thrown in...).

Dave

 

[kenholl]

As I've said all along....

Dogman's response was serious and I agree with him. The market and demand causes the prices to fall and raise. Simple economics (with a little politics thrown in...).

Dave

I agree with Dogman entirely! I got flamed for voicing that unpopular fact after the hurricanes interupted production, and stopped pipeline transport to the south, all at a time when CRUDE was at an all time $high$. Demand was instantly HIGH, while refined fuels were LOW. I was hoping to hear from some of my critics, who went so far as to call my opinion "a joke", to see who they think is "guilty" when the price DROPS!?

If this is all just a manipulative game that "BIG OIL" and the FEDS are playing with us, what is their motive to drop the prices?!? Or is it just a one-way conspiracy?

As I've said all along.... Oil is a market commodity. The price is market driven, based on future price speculation (just like when we buy stock today, speculating that the value will increase tomorrow)...

 

[JLDickmon]

you will notice, that even T. Boone Pickens got on the bandwagon with his comment "this is the largest transfer of wealth in global history"

now, that no one has any money to lend/borrow, you can't rob Peter and pay Paul and hope you make it back on the wrap-around... so you essentially have guys treating oil futures as junk bonds...

all because Ellie Mae and Freddy Mercury insured countless mortgages from people that had little to no credit rating...

 

[BIG JOE]

you will notice, that even T. Boone Pickens got on the bandwagon with his comment "this is the largest transfer of wealth in global history"

now, that no one has any money to lend/borrow, you can't rob Peter and pay Paul and hope you make it back on the wrap-around... so you essentially have guys treating oil futures as junk bonds...

all because Ellie Mae and Freddy Mercury insured countless mortgages from people that had little to no credit rating...

X2, JL

 

[kenholl]

.....now, that no one has any money to lend/borrow... ....all because Ellie Mae and Freddy Mercury insured countless mortgages from people that had little to no credit rating...

Private sector loans, not Fannie or Freddie, triggered crisis
This article was released on the wire yesterday, and I agree with it. Fannie Mae does not create loans, nor does Freddie Mac. They simply purchase the loans created in the private sector (Ameriquest/WaMu/et. al)

A former WaMu exec was on Nightline last night, telling how their CEO ran WaMu into the ground. If you saw it (or read the transcript), you'll notice that he never even mentioned Fannie Mae or Freddie Mac.

I find both of these pieces make a lot more sense than what we are hearing from our politicians (and those with political agendas).

 

[BJS]

Private sector loans, not Fannie or Freddie, triggered crisis
This article was released on the wire yesterday, and I agree with it. Fannie Mae does not create loans, nor does Freddie Mac. They simply purchase the loans created in the private sector (Ameriquest/WaMu/et. al)

Yes Freddie & Fannie do not create loans however since they are the primary purchaser of the loans their guidelines are what the smaller banks follow, so that they can sell the loans later. They are a quazi-gov't agency and function as a benchmark. I can tell you that when I was buying my house all 6 mortgage companies used fannie/freddie guidelines and forms for the mortgage, even though 2 retained 100% of the loans they wrote.

If you are a bank and you have someone who will buy a subprime mortgage that you know is a very high risk you are going to make the loan and sell it as soon as you possibly can in the name of making money. If there were no buyers then you would not make the loan. Pressure from congress was applied to fannie & freddie to encourage them to make the subprime mortgages to people to allow more people to experience the American dream of home ownership.

 

[BamaSixGun]

Just to step in and say...........let's remember to keep a discussion like this
in good sportsmanship of the community.

BREAK......

Now back to our regularly scheduled programming.

 

[kenholl]

...If you are a bank and you have someone who will buy a subprime mortgage that you know is a very high risk you are going to make the loan and sell it as soon as you possibly can in the name of making money. If there were no buyers then you would not make the loan. Pressure from congress was applied to fannie & freddie to encourage them to make the subprime mortgages to people to allow more people to experience the American dream of home ownership.

I don't neccesarily disagree with your logic, but the simple fact that multitudes of banks are collapsing under the weight of these risky loans (of late: Wachovia/WaMu/Ameriquest/Lehman Bros.) tells me that they wrote scores and scores of these loans, while NOT having a buyer. They can't blame Fannie/Freddie!

Fannie/Freddie guidelines: These banks knew exactly what they were doing! It's not as if they were blindly following "Fannie/Freddies: How-to Get Rich In The Sub-prime Mortgage Market" handbook!

Congress pressure: In my opinion, a lot of the rhetoric we are hearing is actually the DEM and GOP posturing themselves, right before a major election, into a better light, trying to absolve themselves of any responsibility, and blaming the other party.

This situation is so complex and multi-layered that I don't think there is a single reason, or single person/entity responsible. In fact, it isn't even from a single President, as it has spanned multiple administrations and political parties! But, in the end, the American people take the hit.