When is the "Oil Bubble" going to burst?? (money, costs)

[Mircea]

Originally Posted by victorianpunk

.granted, some here will say "outsourcing is a great thing!" or some other Bush-esque nonsense, but usually common sense prevails in real life.

Are you denying that outsourcing did not take place during the Clinton Administration?

If so, on what basis do you make such denials?

Contrary to what you might believe, this is not 1946 where the US provides 50% of all goods to the world and there are 124 countries engaged in subsistence framing.

Developing nations are, well, developing, and their people are smarter, better educated and hungry for basic things like running water and electricity. They present competition because they're willing to work and they can work cheaper than Americans.

Publicly traded corporations in the US have a legal, ethical and moral obligation to make money for their investors and shareholders and if that means farming out jobs to other countries to maintain or increase profits, then that's the way it is. It you don't like it, go communist and out-law publicly traded corporations, disband the stock market or limit their profits.

You need to accept the fact that wages in the US will continue to decline and jobs will continue to head to other countries.

[58robbo]

Originally Posted by bnepler

Like the housing bubble, the oil bubble will burst also. Nothing will keep going up out of control like it is. It to will crash also. Either the "future traders" will pull the money out or OPEC will drive down the market by "opening up the spigots".
Why isn't anyone questioning why the market allows the traders to drive the prices up. Someone else, besides the Oil Companies and OPEC are bleeding us all? Who are these people?

never! the chinese have trillions of our dollars in reserve. they don't want to openly minimise their exposure so instead they are stockpiling oil and getting rid of their dollars that way. they will snap up every spare drop of production, including US domestic production, that they can and for this reason we won't see lower prices.

[davidt1]

Originally Posted by Mircea

Are you denying that outsourcing did not take place during the Clinton Administration?

If so, on what basis do you make such denials?

Contrary to what you might believe, this is not 1946 where the US provides 50% of all goods to the world and there are 124 countries engaged in subsistence framing.

Developing nations are, well, developing, and their people are smarter, better educated and hungry for basic things like running water and electricity. They present competition because they're willing to work and they can work cheaper than Americans.

Publicly traded corporations in the US have a legal, ethical and moral obligation to make money for their investors and shareholders and if that means farming out jobs to other countries to maintain or increase profits, then that's the way it is. It you don't like it, go communist and out-law publicly traded corporations, disband the stock market or limit their profits.

You need to accept the fact that wages in the US will continue to decline and jobs will continue to head to other countries.

Having been a stock trader for sometimes now, I am compelled to address some of the misconceptions here.

1. Public companies do not have any obligation to make money for shareholders. Except for a few companies that pay tiny dividends (which they only do to attract buyers), they don't make money for shareholders. Shareholders make money when other people buy the stock and push the price up.

2. Understand that top company insiders usually get shares of their company for little or nothing, and they hold large number of shares. Increasing the value of their own shares is the primary reason they work to increase corporate profits. They don't do it for you or me.

3. But how exactly does any of it work? So if company A makes some nice profit this year, does that translate into profit for shareholders? Do they send you a check because they make so much money? NO. Profit for shareholders, if any, comes from new buyers who push the price of the stock higher. Keep in mind the biggest beneficiaries of any price increase are the people who paid the least for the shares, which are company insiders.

4. I don't mind the system. It is what it is. I am OK as long as I can ride along. What I don't want to see is people being brainwashed or mislead to the point of regurgitating something they read somewhere without really understanding what it means.

[A Blue Window]

When we talk about oil, exactly what are we talking about? Crude?

[bnepler]

The bubble is finally leaking air... I guess the traders are jumping ship before congress changes the law..

[bchris02]

Originally Posted by bnepler

The bubble is finally leaking air... I guess the traders are jumping ship before congress changes the law..

Yeah, I will say its leaking air, though I wont call this a burst yet. I don't think Ill officially consider the bubble burst until the price drops below $100 and is sustained there.

[bnepler]

Originally Posted by bnepler

Like the housing bubble, the oil bubble will burst also. Nothing will keep going up out of control like it is. It to will crash also. Either the "future traders" will pull the money out or OPEC will drive down the market by "opening up the spigots".
Why isn't anyone questioning why the market allows the traders to drive the prices up. Someone else, besides the Oil Companies and OPEC are bleeding us all? Who are these people?

Like the housing, it was an investment bubble. No wonder the politicians didn't do anything about the futures/hedge funds market, they just pulled their funds out and put them back into the stock market when it got low enough. Not future market traders? Hmmm. I guess they got enough of our money. Well I guess they can always blame it on the nasty old Big Oil. When are we going to get rid of these greedy politicians in DC? They're the ones that control and destroy our lives!!!

[texdav]

The thing is that perices have been too high but that being said production worldwide is very close to usage. One minor rpoblem and it starts up again. Stupid us ;we keep our production low and send unnessary dollars overseas. Remember when carter said on TV after the crisis in the 70's that we would never agin import more then 40% of our crude needs. Well they stopped driling gas went up;dollars went out of country and stopped nuckear and electricity started rolling blackouts and price went up. We are the only counttry this stupid.

[jamesandveybe]

The Peak Oil discussion is ongoing. I don't know enough about it yet to make a prediction of when, but I am already prepared, so bring it on. There is no 'if.'

[bnepler]

It's all about markets and traders. Where ever the money is. Like they say, "follow the money".