Quote:
Originally Posted by ASU2003
1. You can only drive so much. If you are going to the beach, you aren't going to drive into the water. Now, you might be able to make two trips to the beach, but that will help their economy and improve your life. (*replace beach with any other destination a few hours away)
|
Behavior changes occur on margins.
For example if the difference between public transportation and driving to work every day is $100 per week. That person looks at that cost difference and other considerations and drives. If the difference is $200 due to increased gas prices, that person looks at the other considerations and takes public transportation. However if the person sells the SUV and gets a more fuel efficient car and the difference goes back down to $100 they drive to work - and then they go to the beach - No gas was saved! I don't know, but we need to ask the question, and understand marginal behavioral changes.
Quote:
|
3. My car gets 40.04 mpg on the highway, where is the one place I still drive it a few times a year. But, if I had an older low mpg vehicle, there would be fuel savings if I was able to double or triple the mpg when buying a new car. They might drive it more, but again, it will improve their life by going more places and doing more things.
|
Maybe, maybe not. What if driving in a cramped econo-box results in lower back problems? What if you need surgery? What if you can't work?
Or, what if more people with 40 mpg cars driving more, cause more traffic jams, and people waste hours everyday in traffic?
Or, oh, never mind I am sure you get the point.
Quote:
|
4. Just because auto and oil lobbyists worked their magic and made it a watered down bill where SUVs weren't included, doesn't mean it's a bad bill. It means what the lobbyists did was bad.
|
I just want people to ask the question. If CAFE standards work, great. If they don't work, lets focus on a solution that does.
Quote:
|
Anyways, I saw that market oil prices fell 10% today... Hmmm, did 10% of drivers stay home today? Did 10% of cars, airplanes, and factories shut down? They claim that speculators might count for 5% of the price...I'm thinking it is closer to 75%. In 2008 it went from $145 to $35, that isn't supply and demand anymore. However, Obama is in a tough spot. He doesn't really want oil to plummet like that. All of these alternative energy projects will go under, yet he wants to hurt the oil companies and keep the economy on track.
|
The short-term price of oil is not being driven by market fundamentals of supply and demand. What we saw may have been a swing in speculation drivng the price up to speculation driving the price down. There is no doubt that speculation is a component of oil prices.
---------- Post added at 04:26 PM ---------- Previous post was at 04:14 PM ----------
Quote:
Originally Posted by dippin
If anything, that proves how wrong you are. So the dollar-Euro exchange rate is back to 09 levels? and the dolar is worth only about 14% less than what it was worth at its peak in recent years? By simple logic that can't explain how gas prices have risen so much. So again, this whole "QE is the cause" is bs.
|
Again, I don't really understand your issue with my point. The Fed's current policy position is to weaken the dollar to spur economic growth. The Fed has never been as aggressive in trying to spur demand as the are know. In the past the Fed has been very conservative and acted in a manner to prevent inflation.
Time will tell. If the Fed gets it right, we will see strong economic growth with little or normal inflation. If they get it wrong, inflation will spike in the months to come across the board.
Also, keep in mind that the Fed acts on behalf of the US economy. As the Fed devalues the dollar it makes imports into this country more expensive and our exports cheaper. The result is to help the US but it hurts other nations - or those that trade in dollars with us.
---------- Post added at 04:29 PM ---------- Previous post was at 04:26 PM ----------
Quote:
Originally Posted by Baraka_Guru
Dippin, that's also the level it was at in the beginning of 2007.
|
Nothing occurs in a vacuum, many forces are in play affecting exchange rates.
Don't you find it curious regarding the complaints against China for them "manipulating" their currency, but we (the US) gets a pass? I do.