OT: When is the bubble going to pop?

There appears to be no logical reason for oil prices to have doubled in the last year, except for pure speculation. At some point George Soros and the rest of the speculators are going to run out of money to pump the bubble. Demand hasn't gone up 100 percent. Gasoline demand in the US is starting to go DOWN.

This is exactly what happened to the housing market in the housing bubble. Certain people, (we'll call them idiots for want of a better term) kept the market going up and up until regular people couldn't afford housing. No matter what the idiots did, people couldn't afford the outlandish prices (doubled in some places in a very few years) so demand started down, then prices followed, when there was no longer enough demand to support the idiots pumping the bubble.

Only in this case, the spike in gas prices is causing far deeper problems. People are having to choose buying gas or eating in some cases, and worse things in others.

George Soros is a known speculator and tried to break the Bank of England once and very nearly did. That takes a hell of a lot of money. I'd almost bet that disguised under several layers of phony companies, he's helping to push the oil bubble, so he can get his way in politics here in America. And he's probably not the only one, just one of the more noticeable ones. What if he's trying to break the Federal Reserve Bank by pumping oil? He's made it known, though his funding of MoveOn.org and other liberal front groups, that he wants a LIEberal in the White House. And anyone that has enough power to nearly break one of the largest financial institutions in the world has enough power to at least try to get what he wants. What if the high price of oil is just Soros' way of making sure Obama is elected in November? And who is going to object? The Saudis? Hell, no, they're more than happy to get double their money from the Western infidels. The oil companies? Hell, no, they're reaping record profits, while at the same time complaining about how much their raw material costs, and not exploring for new sources. (And don't the oil companies have a vested interest in the crude price of oil coming out of certain fields anyway?) The government, neither the Democraps nor the Republicants don't really seem to care either, because they're getting record revenues from the high price of gasoline, diesel, and other petroleum products.

Once again, the American consumer get it right where it hurts. Many of us are already trying to conserve, and have been for some time. But cutting the demand doesn't even seem to have an effect on the price, either. That's a serious sign that something other than the natural law of supply and demand is determining price. Where the hell are the consumer watchdogs? They're strangely silent these days. We hear a lot of talk about high gas prices, but I haven't seen, except maybe in the Wall Street Journal, anything deeper than mere bitching about high gas prices.

Are we going to start referring to George Bush as Herbert Clark Hoover the next? People don't remember their history at all. Herbert Hoover was a hero during WW1 for implementing conservation without rationing here in the US, and after WW1 for helping feed Europe while they were still recovering. He was also a hero for keeping the radio mess under control in absence of any effective regulations prior to 1927. But what most people think of when they think of Herbert Clark Hoover, is the Great Depression and his failure to do enough about it to make a difference.

Will that be George Bush's legacy? Instead of the hero of 9/11 and the war against terrorism, will we remember that it was on his watch that gas went from 1.85 to over 4 dollars a gallon, while the dollar collapsed and the economy soured?

Charles the Curmudgeon

Reply to
CharlesTheCurmudgeon
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In message news:fLCdnb30F8X_OaPVnZ2dnUVZ snipped-for-privacy@comcast.com, "CharlesTheCurmudgeon" burned some brain cells writing:

He'll be remembered as the greatest man in the history of the world.

Reply to
Klark Kent

The bubble did NOT burst. Housing is still strong. December 2007 there were as many houses sold in my market as there were a year earlier and the prices were up. There are still many houses selling the first day on the market! I know of several markets like that. I make money off of fools like you. Forget the lying press. Good news doesn't get viewers or sell papers. Lies do. What you said is true in some markets (CA, NY, etc.), but that does NOT reflect the entire market.

Reply to
Mike Dobony

In message news:p5OdnU_g_ttvQ6PVnZ2dnUVZ snipped-for-privacy@ptd.net, "Mike hunt" burned some brain cells writing:

Because the Fed debased the dollar to pay for the war. Sound familiar?

Reply to
Klark Kent

Its driven on the demand side from China and India.

At some point George Soros and the

Investors (idiots as you call them) did very well in the beginning of the cycle when the market was going exponentially coupled with low interest rates and no money down. What a feast!

No

Its lot more affordable now with huge discounts of 50% or more in foreclosures. Residential real estate cycle is about 5-10 years, nothing new except this time we had too many greedy brokers and lenders making adjustable loans to people who really couldn't afford it. Its only affordable when the housing market goes up but as everyone knows what goes up will come down. Amazing, 10% bad loans brought down almost 100% in valuation of the banks and financial institutions.

We're driving about 4% less this month compaired with last year according to local news. Oil is down about $4 at time of this writing but I think we'll be in deep trouble when it goes to $150 per barrel with more closing of airlines, high transportion cost, high food prices, people couldn't afford to go to work, etc.

Don't blame the Saudis, its a free market and why should they increase production just for us when we have more oil than the Saudis, coal for the next 200 years and a huge reserve of natural gas. Yet we haven't produce a new refinery in decades nor permit new off shore drilling or new nuclear plants, cars we drive are heavier and not much more gas efficient than the

1970s. Corn ethanol is a disaster. Political correctness, government policies, the enemy is us. What do you expect form rich, privileged, elite politicians and lawyers running this country? The days of Mr. Smith Goes to Washington are long gone.
Reply to
<Frank>

In message news:PeKdnSQHH_8vbKPVnZ2dnUVZ snipped-for-privacy@comcast.com, burned some brain cells writing:

Hmmm... I thought the definition of "greedy" was "wanting something you can't afford". Yet you think these buyers are somehow witless victims.

Reply to
Klark Kent

In message news:PeKdnSQHH_8vbKPVnZ2dnUVZ snipped-for-privacy@comcast.com, burned some brain cells writing:

If the brokers and lenders were "greedy" why were they charging LOW rates instead of HIGH rates?

Reply to
Klark Kent

Yes, according to local news and CNBC, many of them are unsophisticated buyers and had the brokers reported more assets and income than they actually had to qualify for the loan. Many of them were from low income families and uneducated.

Reply to
<Frank>

Brokers charge a percentage on the sales price, not the loan rate. Rates were at a historical low, not because the lenders elected it to move a product.

Reply to
<Frank>

I don't know about the lenders, but brokers often get paid just as well per contract for low rates as for high ones. Don't say no. It's true.

Reply to
JoeSpareBedroom

In message news:s6adnVrepLjiZ6PVnZ2dnUVZ snipped-for-privacy@comcast.com, burned some brain cells writing:

Uh, the BUYER has to SIGN that report and it is a FEDERAL CRIME to supply incorrect information.

Wah wah wah.

Reply to
Klark Kent

I believe if you do a search you will discover there was not FED back then. What cause the rampant inflation was FDR simply printed more money to pay for the "Lend Lease" program and to feed the war effort. When FDR was asked about the ever growing nation dept he replied, "When ones house is on fire does one worry about the water bill?

Today is much different inflation has been minimal in time or war.

Reply to
Mike hunt

Lender simply did what the law allows, loaned up to 100 of the value of the property. That was not always the case. Previously one could only borrow up to 90%. Guess which party changed the law, to help the poor and to stop "Redoing" in minority communities

Reply to
Mike hunt

DUH?

Reply to
Mike hunt

"Rarely is the question asked: Is our children learning?"

Reply to
JoeSpareBedroom

In message news:HP6dnStQftjglqLVnZ2dnUVZ snipped-for-privacy@ptd.net, "Mike hunt" burned some brain cells writing:

The Fed was formed in 1913, genius.

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Yeah. Who oversees printing the money?

At least he could complete a sentence, unlike Dumbya.

I guess you don't eat, drive or have a house. Or know what M3 is.

Reply to
Klark Kent

"I'll be long gone before some smart person ever figures out what happened inside this Oval Office."?Washington, D.C., May 12, 2008

Reply to
JoeSpareBedroom

They also required banks to have a certain number of "low-income" loans on their books. Even when they would finance 100% of the value, banks still had trouble meeting the loan requirements, that's why they started writing "balloon" mortgages. And it's the balloon mortgages that have everyone in trouble now.

Jack

Reply to
Retired VIP

What banks? The problem was that banks were not involved. Mortgage brokers were. They did not have the same borrower standards that the banks had. For example, there were basically no standards beyond having a pulse. They also did sleazy things, like changed the terms of the loans (people who were told that they had a fixed rate loan ended up with ARMs with teaser rates), didn't give the borrowers paperwork in time to examine the paperwork and cancel the loans (under state laws, borrowers can cancel a mortgage within a certain period after the loans is made, like 72 hours), added fees and received kickbacks from the companies to which they sold loans.

For the most part, the only times banks were involved was when they bought portfolios of mortgages, and the value of the portfolios turned to be lower than expected, because the loans went bad.

It wasn't just balloon mortgages. It was also ARMs with a rate that went up after a period of time

Reply to
Jeff

Borrowers should hold some responsibility here. They are just as greedy. More, more more, cheaper cheaper cheaper so they can buy more and more toys, entertainment with their loans against the home. People nowdays have no restraint, no self discipline.

Reply to
dbu

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