jbde

The Global Oil Scam: 50 Times Bigger than Madoff

Don't get me started on GS [so I will not]

The facts are:
There is plenty of oil production now
Iraq is about to come online in a big way with oilfield upgrades
There is record oil in storage
There is oil being 'parked' in barges

The results will be:
Price will correct when the commodity bubble bursts
After dropping into the 20's prices will recover to $50-60
All production costs [except oil sands] will be covered by this range
Oil producers will make a profit but cannot get price back up
[with margins cut, there will be quota cheating]

Why:
We are enterring a period of rampant defalation
Every commodity, finished good and trinket will be sold for cash

The Smoking Gun of the Credit Crisis: FICO

And now FICO's are the problem. Everyone is now on the 'tightening of lending rules' bandwagon. Thus lenders immediately limit the market of buyers.
Second, as more and more people have problems, the avergae scores are dropping.
At some point creditors [sellers] will have to lower credit standards or the markets for houses, cars, white-goods and furniture will continue to shrink. Of course they can lower prices. Not just offer lower priced options, but lower prices on the same item - costs are dropping.

And what about the car pirces? House prices come down, commodity prices come down - even food us dropping as shipping costs are lower.

But not those car prices. Discounting is not lowering. When someone actually lowers prices on an established model instead of giving rebates, they will set the new trend as telling it like it is. Peopl will flock to the truth-teller.

As for US legacy employment costs, the unions have caused a wage bubble - no forklift operator should be getting $103K. No person who attaches part A to part B should be getting a 73K package.

There is only one solution - you have to get rid of the union contracts and BR is the only way.
The government then has to do two things - guarantee car warrantees and underwrite the mortgages of the autoworkers who have bought based on their inflated wages and will require mortgage assistance,

This is the cheapest way out! Otherwise, they come back to the trough.