The Energy Non-Crisis

[Pemberleyan]

Hold your mouth closed as you watch this and think about the false oil crisis being fed to the American people. You will be shocked.

[ame="http://video.google.com/videoplay?docid=3340274697167011147"]The Energy Non-Crisis[/ame]

[suki]

Haven't watched the video yet, but I've not heard anyone say there's an oil crisis... or anything to that degree.

The problem with the oil prices is an out of control commodities market. The rich are getting richer...

[Gabe]

http://news.google.com/news?hl=en&um...s%22&scoring=n

[Russ]

Hold your mouth closed as you watch this and think about the false oil crisis being fed to the American people. You will be shocked.

http://video.google.com/videoplay?do...74697167011147

Haven't watched the video yet, but I've not heard anyone say there's an oil crisis... or anything to that degree.

The problem with the oil prices is an out of control commodities market. The rich are getting richer...

I don't disagree with either of you as you are talking about 2 different things.
The "peak oil" is a real thing but it depends on who you talk to as when it will take place. Is it at crisis level? IMO, not yet, but the day will come. Is now the time to conserve? Uh, yeah, we should have been conserving for years.


Are the prices out of control? Yes! thank you commodities market. Why? Because that is what they are paid to do. Invest in something that will and has gone higher. Thay have done a damn good job don't you think?

[suki]

Sorry, still not seeing where anyone is claiming there is a current oil crisis. In fact, the Saudi's have said they don't know why prices are sky-rocketing... there is plenty of supply. This was widely reported recently.

[Greebo]

Depends on how you define "crisis". If you mean shortage, there isn't one. If you mean price increase caused by devaluation of the dollar and commodities trading, then whether or not there's a crisis depends largely on your personal budget prior to this year.

[suki]

Depends on how you define "crisis". If you mean shortage, there isn't one. If you mean price increase caused by devaluation of the dollar and commodities trading, then whether or not there's a crisis depends largely on your personal budget prior to this year.

I believe the gentleman in the video is referring to shortage... and I've not seen, read or heard anyone make that claim.

[Pemberleyan]

Actually, the gentleman in the video thinks there is anything but a shortage.

[suki]

Correct, but he's referring to the shortage as the crisis... isn't he?

[Nishu]

http://www.tampabays10.com/news/loca...?storyid=83741

This was posted on Fark earlier today with the headline "Leftists to blame for gasoline over-consumption. Who knew?"

I opened it expecting something really awesome. It was still funny just because of the headline.

I've heard these investors are getting a way bad rap because they're playing what's essentially a zero-sum game. For everyone buying expecting the price to go up, someone is selling an anticipation of the price going down.

[suki]

Nishu, if that were the case why do we have investment markets? If the companies or suppliers receive zero sum... where's the incentive to participate and perpetuate the markets?

Doesn't make sense... sounds like that came from someone heavy into the commodities market.

Warren Buffett recently spoke out about this and very plainly stated what is happening. It's a worthy read.

[Greebo]

http://www.tampabays10.com/news/loca...?storyid=83741

This was posted on Fark earlier today with the headline "Leftists to blame for gasoline over-consumption. Who knew?"

I opened it expecting something really awesome. It was still funny just because of the headline.

I've heard these investors are getting a way bad rap because they're playing what's essentially a zero-sum game. For everyone buying expecting the price to go up, someone is selling an anticipation of the price going down.

Well there's two problems with that idea.

One, sometimes people sell not cause they expect the market to shrink, but just to take a profit, or regain liquidity.

Second, neither the investment market, nor the general economy, is a zero sum game. The idea that they are is a common misconception. The economy is an open system, by which I mean that there is constantly new "energy" (for lack of a better word) being injected into the system. This energy comes in the form of new products and services, as well as increases in production of existing products and services. Money (the symbol of productive effort) comes in, and money goes out, but over any long period of time (>10 years) the economy, and the market which reflects it, always grows.

[Nishu]

Nishu, if that were the case why do we have investment markets? If the companies or suppliers receive zero sum... where's the incentive to participate and perpetuate the markets?

Doesn't make sense... sounds like that came from someone heavy into the commodities market.

Warren Buffett recently spoke out about this and very plainly stated what is happening. It's a worthy read.

Individual investors are not seeing zero sum... that would make no sense. You're referring to the stock market as a whole.


http://money.canoe.ca/News/Economy/2...982996-ap.html

OMAHA, Neb. - Billionaire Warren Buffett has already said he thinks the U.S. economy is in a recession, and now he says the economy is getting worse.

Buffett told CNBC in a live interview Wednesday that all the data he sees from Berkshire Hathaway Inc. subsidiaries shows the economy weakening. "Everything connected with construction and with consumer, I see weakness, and if anything, it's accentuating a little bit."

Buffett also said he thinks inflation is picking up, especially in steel and oil, so it should be a concern for the U.S. Federal Reserve.

But Buffett said he would have been surprised if the Federal Reserve were to announce a rate cut Wednesday afternoon.

The Fed left rates unchanged.

"I think the Fed has to be careful not to do anything that signals that they regard inflation as a secondary goal and something they'll worry about later," he said.

Buffett also said he believes supply and demand, not market speculation, is what's driving oil prices to new heights.

Oil futures fell Wednesday after the U.S. Energy Department said the country's supplies of fuel and oil were larger than expected last week, but prices remain above $130 a barrel.

Buffett said he disagrees with the idea that speculation was driving oil prices higher. At least nine bills proposing limits on that oil speculation have been introduced in Congress in recent weeks.

"In my adult lifetime, up until the last year or two, there's been a huge amount of excess supply available," Buffett said. "We don't have excess capacity in the world anymore, and that's why you're seeing these oil prices."

Buffett said he doesn't think it makes sense to impose a windfall tax on oil companies that have benefited from the high price of oil when other commodity prices have also increased. Steel, corn and soybean prices are all up significantly.

"I don't think any candidate in his right mind - with the number of electoral votes in farm states - would say that you ought to tax farmers specially because they're getting a windfall," Buffett said.

When asked about politics, Buffett said he doesn't think Democrat Barack Obama or Republican John McCain will have trouble raising money in the presidential race.

Buffett was backing both Obama and Hillary Rodham Clinton throughout the primaries, but since Clinton dropped out of the race, he has been supporting Obama.

"I think Barack is going to have plenty of money," he said.

Buffett will help make sure that's true by appearing at a campaign fundraiser in Chicago next Wednesday.

On another financial issue, Buffett declined to take a position on the proposed takeover of Anheuser-Busch even though Buffett's company owns 35.6 million shares of Anheuser stock.

Buffett said he hasn't talked to Anheuser management or anyone else about the deal, despite media reports that he had.

"I think it's an interesting spectator sport at the moment," he said.

Berkshire's holdings represent 5 per cent of Anheuser's outstanding shares, so Buffett's company has a significant stake in Belgian brewer InBev SA's proposed takeover of Anheuser.

InBev offered to pay $65 per share, or about $46 billion, for Anheuser on June 11. But Anheuser has not formally responded yet.

Buffett was in New York to dine with the winners of a charity auction. Every year Buffett auctions off a lunch and donates the proceeds to the Glide Foundation, which provides social services to the poor and homeless in San Francisco.

The two investors Buffett was dining with Wednesday paid $650,100 last year for the chance to have lunch with the chairman and CEO of Berkshire Hathaway Inc.

A new lunch auction began Sunday and runs through Friday. The top bid on EBay Wednesday morning was $77,100, but that is almost certain to grow before the auction ends.

Berkshire Hathaway owns a variety of companies, including insurance, clothing, furniture, jewelry and candy companies, restaurants, natural gas and corporate jet firms and has major investments in such companies as Coca-Cola Co. and Wells Fargo & Co.

/shrug

[suki]

"It's not right that hundreds of thousands of jobs are being eliminated, that entire industrial sectors in the real economy are being wiped out by financial bets even though the sectors are actually in good health."

Buffett complained about the lack of effective controls. "That's the problem," he said. "You can't steer it, you can't regulate it anymore. You can't get the genie back in the bottle."

http://www.checkthemarkets.com/index...=628&Itemid=40

[Nishu]

But that's about economic health in general... not oil prices.