<<<<Does it matter at all??? Life still goes forward...>>>>
Whatever that means. As if life can go backward.
When fuel soars you won't be flying too often. Farmers will start going broke as their costs soar and their buyers resist the increases.
The government will react to the panic as governments always do..... by instituting price controls, which will bring all production of scarce goods to a stop.
This is when it will really hit the fan.
Yes, it matters greatly. If oil prices rise to $150 they would be back to the JUly 2008 levels -- less than one year before GM filed for bankruptcy. The rising price of oil raises gasoline prices and puts less discretionary income in consumers' pockets.
Anyone who says it does not matter is an example of someone who is unaware of the past and likely has never taken a class in microeconomics. All past energy shocks have devastated vehicle sales.
I agree with you stockisnotfun,
In Europe gasoline prices are much higher and people still are buying cars to go to work, on vacation etc.. I remember shorting Fedex because I thought its business would be hurt by higher oil prices back then in 2008 and the only thing going back was my money...
I took a certain machine repair machinist's advice and loaded up on a 2500 HD that can tow 21,700 lbs. because he said oil was going to $50/bl. (insert seekingalfa and weekly API inventory cut and paste). Boy, do I feel foolish! I wonder if GM will give me a refund on my truck purchase.
Last time I called for oil at $150.00 I was mocked and ridiculed because I missed it by $1.45.
They never let me forget that oil never got past $149.00
I am not a professional making my living making predictions or giving advice. All we do on boards like this is air our views and thoughts of things to come. We do it with our stock picks and our other investments.
Where we sit right now, there has got to be a time we will have to pay the price for all this printing of money. Hell we may even run out of ink before it is over.
Gold will go well past $1500, and Web maybe correct. Oil may very well see $200.00
If you guys think we are struggling with $4.00 a gal. gasoline, we will be completely lost with gasoline at $6.00.
No, VOLT will not fill the void. By the time we get to a point where we can't afford to drive our cars to go look for a job, we won't be buying any VOLTS.
We will be driving tiny little cars from China or India that are not much better than the average golf cart.
NO, GM will not be leading that revolution either. They will be spectating like they always do.
I wish I could see a silver lining in the future, but I don't.
We used to say our grand children will be paying for our sins. I am afraid our grand children will not be able to pay for it, because they will be too broke to do it.
A long time ago, we discussed oil prices on this board.
I stand by my prediction that we will see $200 oil.
All that it would take for this to happen is for the dollar to lose its preferred status as the world currency for buying oil, and this is already happening. The Iranians won't even take it anymore.
What some folks don't understand is that one big reason the US dollar still 'spends' world wide is the international agreements to buy oil in US dollars. So third party countries have to buy dollars first, then use those dollars to buy their oil. As a result, many countries already pay the equivalent of $6 or $7 a gallon for gas.
This practice has given our govt the ability to print, print, print more and more dollars, and we knew folks would always take them because they could buy oil with them.
If that changes, then we're just in line with everyone else.