Here Comes the Recession

#426
#426
37L1 said:
It's going to hurt Iran the most.
Click to expand...

Pretty sure that's not the case. Believe the marginal cost per barrel is actually significantly higher in most ever other country than Iran... including the US.

Iran is however gets boned by the sanctions.
 
#427
#427
MontyPython said:
Wrong. Commodity prices go up as the economy expands and heats up. Plummeting oil prices are deflationary and denote shrinking demand.
Click to expand...

I took economics, too - got the whole supply and demand thing down pat. Our current problem is that the tail (commodities and stock markets) are wagging the dog (business). The concept was that markets provided capital for business expansion and a rational way to buy and sell commodities rather than drive business decisions necessary for short term profitability. There's so much money invested in the NY and Chicago casinos that it's like a dog's tail whipping a concussed flea.

Of course, with all other things held constant increasing demand by a vibrant economy can drive up commodities such as oil. However, as demonstrated many times, reduced costs like taxes, interest rates, and energy spur business because consumers have more disposable income and manufacturers stand to increase sales and benefit from their own reduced manufacturing costs. With your line of thought we should just do Bernie style taxes and really whip up the economy.
 
  • Like
Reactions: VolStrom, Matt2496, NorthDallas40 and 3 others
#431
#431
Great summary of the Russia factor in oil...

"It's no secret that Russia and its oil companies have grown impatient with OPEC's efforts to rebalance the oil market. For years, Russia has joined OPEC in cutting production to put a floor beneath oil prices.

Yet each production cut forced Russia to cede market share to America's booming energy industry -- much to the ire of Russian oil executives.

Rosneft, Russia's state-owned oil company, called the OPEC alliance "masochism" that allowed US shale oil to thrive.

"By yielding our own markets, we remove cheap Arab and Russian oil to clear a place for expensive US shale oil and ensure the effectiveness of its production," a spokesperson for Rosneft said on Sunday, according to state media."
 
#435
#435
Depending on how bad it gets I can see bailouts for some businesses, like airlines.

Tough case to make for cruises and oil.
 
#436
#436
Velo Vol said:
Depending on how bad it gets I can see bailouts for some businesses, like airlines.

Tough case to make for cruises and oil.
Click to expand...
I cant make the argument for airlines or oil. With the price gouging and supply manipulation that has occured in the past, their drop in revenue is a them problem.
 
  • Like
Reactions: AM64 and OHvol40
#437
#437
Can't believe nobody has brought up the fact yet (unless I've missed it) Trump's buddy Putin, who stole the 2016 election, but a knife right in Trump's back yesterday with this move. What sense would that make, if Putin wants Trump re-elected.
 
  • Like
Reactions: AM64
#440
#440
Velo Vol said:
Depending on how bad it gets I can see bailouts for some businesses, like airlines.

Tough case to make for cruises and oil.
Click to expand...
The Airlines have been making record profits the last few years. Maybe they should have saved that money for tough times instead of giving board members multimillion dollar bonuses.
 
  • Like
Reactions: CagleMtnVol and AM64
#444
#444
05_never_again said:
Can't believe nobody has brought up the fact yet (unless I've missed it) Trump's buddy Putin, who stole the 2016 election, but a knife right in Trump's back yesterday with this move. What sense would that make, if Putin wants Trump re-elected.
Click to expand...
Putin has his own political battle to fight in Moscow the other day. The move involving oil was a way for him to get the rest of the support needed to pass the law in the Duma that would allow him to stay in office 2 more terms.
 
#446
#446
Velo Vol said:
Depending on how bad it gets I can see bailouts for some businesses, like airlines.

Tough case to make for cruises and oil.
Click to expand...

You think maybe Delta should have put a chunk of money in a rainy day fund rather than giving huge bonuses to employees a few months ago? Or maybe just stopped charging for bags, made customers happy, out flanked the competition, and still put some money away for a rainy day? If we need bailouts every time there's a ripple in the force, then the CEOs making millions aren't making million dollar decisions.
 
#447
#447
05_never_again said:
Can't believe nobody has brought up the fact yet (unless I've missed it) Trump's buddy Putin, who stole the 2016 election, but a knife right in Trump's back yesterday with this move. What sense would that make, if Putin wants Trump re-elected.
Click to expand...

Something someone posted led me to post about that in the Corona virus thread yesterday. volfanhill was bent out of shape by it. But, yep, it certainly looks like the Russians are at it again, and trying to steal the election away from Trump.
 
#450
#450
carlos86 said:
The Airlines have been making record profits the last few years. Maybe they should have saved that money for tough times instead of giving board members multimillion dollar bonuses.
Click to expand...

I hadn't read this when I posted my comment about that. I agree completely with you. No reason for boom and bust ... even the bible had a few words about times of plenty and times of lean and how to manage them. With what CEOs and top execs are paid, you think they could manage a bit better.
 
  • Like
Reactions: Orangeslice13
New posts
You must log in or register to reply here.

VN Store



Back
Top