Oil is up $25 TODAY

#26
#26
BigPapaVol said:
some of it is laughable, but the poor people buying houses argument has some validity.

I don't know the average unit value of defaulting properties in this mess, but I bet it would shock you.

I'm not exonerating anyone for lax underwriting, but many of the loans out there were essentially jammed down throats by the FHA, Fannie and Freddie.
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My frustration stems from the Fed being well aware of a bubble growing in the mortgage market (specifically with subprime loans) and chose to ignore the problem, at one point, Greenspan even lauded the growth in the subprime market! :banghead2:
 
#27
#27
BigPapaVol said:
some of it is laughable, but the poor people buying houses argument has some validity.

I don't know the average unit value of defaulting properties in this mess, but I bet it would shock you.

I'm not exonerating anyone for lax underwriting, but many of the loans out there were essentially jammed down throats by the FHA, Fannie and Freddie.
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I'm not sure what the percentages on it are, but its basically some poor people, a lot of real estate investors borrowing to secure properties for flipping purposes, a number of folks with high undocumented incomes or a substantial downpayment, but spotty ability to keep up payments for five years running, and a few other groups.

Add onto that the way that the mortgages were pushed onto or sold to people who should have been screened.

Add onto that people speculating in the secondary market for bundled mortgages.

Add onto that the hedge funds that bought the lowest grade of paper. And then the hedge funds that shorted the stocks of those that had done that.

There's plenty of blame to go around. I don't blame Bush for it in particular, or Congress. I think we could have used a lot more oversight and perhaps Congress could take action to prevent people whose company is going under to the tune of billions in a government bailout from walking away with $100 million each.

But everyone tried to make a buck and now we're going to pay that buck back, plus interest, for the next 20 years or so.
 
#28
#28
the november contract is at $109. This was just a trading issue. nothing to freak out about.
 
#32
#32
VolByBirth said:
I'm sure this is posted somewhere else, but I'm sure it will make for great conversation (or ripping apart).

Recent drop in crude is an illusion - oil is going to $500. - Sep. 22, 2008
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Pure sensationalism. That's as bad as the guy in Ohio that claimed he had built a 100 mpg Mustang that could do a 10 sec quarter.

Is oil going to go back up, or at the very least hover around $100 pb? Yes. Is it going to $500 pb? Not a chance. That is 10+ years down the road, and I expect gasoline engines to be a thing of the past by then.
 
#33
#33
rwemyss said:
Pure sensationalism. That's as bad as the guy in Ohio that claimed he had built a 100 mpg Mustang that could do a 10 sec quarter.

Is oil going to go back up, or at the very least hover around $100 pb? Yes. Is it going to $500 pb? Not a chance. That is 10+ years down the road, and I expect gasoline engines to be a thing of the past by then.
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Man. I hope you're right. Historically you would be wrong.
 
#34
#34
MontereyVol said:
Man. I hope you're right. Historically you would be wrong.
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Once a new technology becomes the more economically feasible option, it will take over.

If I were wrong 'historically', you'd be driving a car with a steam engine.
 
#35
#35
No you only really have to look back a couple of decades. The last oil scare, the embargo should have made us move away from reliance on foreign oil. Not only did it not but we started importing and more and more from overseas. There are all kinds of economically feasible options now and back in the 70's, we Americans are not partial to them.
 
#36
#36
lawgator1 said:
In one day, record jump of $25 to $130ish a barrel.

Now watch -- in the next 2-3 days, the price of gas will be back up to $4.00 or so. We were down to $3.55 or so here, but prices rise a lot quicker in reaction to oil increases than they fall in reaction to oil decreases.

Obama would be smart to harp on this a bit because people are going to be pissed this week.

Oil spikes $25 a barrel on anxiety over US bailout
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This had nothing to do with the economy and 100% to do with short covering and the electronic trading floor not being able to handle the spike in orders for the October contract. If you look at the November contract
it barely budged
 
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