who killed the economy?!?!

[Flipx99 5,000+ posts]

Yes for 7/02 and other days higher/lower; so does that not show that market followed suit?

Well, yes. I never argued that it didn't...just that it doesn't have to. I am not going to lie and say I don't believe there aren't winks and smiles being passed from members of the FOMC and member banks. I believe they collude...with little doubt. I also believe it is good at times that they do collude....otherwise the banks could turn on the govt...so to speak.

 

[lilmaniac2 5,000+ posts]

Yes for 7/02 and other days higher/lower; so does that not show that market followed suit?

your so dense, the market followed suit for ONE DAY so you can generalize that because of that one day the market always follows suit?

 

[Flipx99 5,000+ posts]

Does there have to be an excess supply for the current market price of something to be overvalued?

By definition, I believe so.

 

[bigbirney420 10+ year member]

But doesn't all the bubbles have excess supply as an issue?
Since I have come of age as an investor, I have seen two bubbles; internet stocks and real estate. In both cases, there was excess supply (excess IPOs from high tech and excess houses built in real estate) Where will the excess supply of oil come from?

There is an excess of oil. Just not much, but it will be much more soon. US demand has gone down tremendously while China and India has gone up exponentially. China has been subsidizing gas and making it less than a dollar for its consumers, which they have stopped doing. It is now over 2.50, and with the olympics they can only drive on odd and even days to reduce pollution. India is about to do the same thing. It will be much harder for them to consume so much oil without subsidies on thier meager wages.

The greed is driven by the speculators that feel that oil will remain this high for months to come, even if Worldwide demand goes down, which it will.

 

[duece212 5,000+ posts]

By definition, I believe so.

Not really worried about a definition, just real world case. If oil could be undervalued with adequate supply for the current time, why couldn't it be overvalued at a certain price with the exact same supply?

 

[lilmaniac2 5,000+ posts]

There is an excess of oil. Just not much, but it will be much more soon. US demand has gone down tremendously while China and India has gone up exponentially. China has been subsidizing gas and making it less than a dollar for its consumers, which they have stopped doing. It is now over 2.50, and with the olympics they can only drive on odd and even days to reduce pollution. India is about to do the same thing. It will be much harder for them to consume so much oil without subsidies on thier meager wages.The greed is driven by the speculators that feel that oil will remain this high for months to come, even if Worldwide demand goes down, which it will.

I actually agree with this point, I saw that Saudi Arabia has promised to allow more oil out as a result of the US citizens investigating other means of energy. I guess they figured America going away from oil would be bad for them.

 

[Flipx99 5,000+ posts]

There is an excess of oil. Just not much, but it will be much more soon. US demand has gone down tremendously while China and India has gone up exponentially. China has been subsidizing gas and making it less than a dollar for its consumers, which they have stopped doing. It is now over 2.50, and with the olympics they can only drive on odd and even days to reduce pollution. India is about to do the same thing. It will be much harder for them to consume so much oil without subsidies on thier meager wages.The greed is driven by the speculators that feel that oil will remain this high for months to come, even if Worldwide demand goes down, which it will.

I see your point...and agree. Except with the speculator part. I gotta go, but there is an explanation in CT why blaming future speculators doesn't work.

 

[lilmaniac2 5,000+ posts]

Not really worried about a definition, just real world case. If oil could be undervalued with adequate supply for the current time, why couldn't it be overvalued at a certain price with the exact same supply?

without a common meaning, or definition how can we communicate.

You guys talk shit about Flip's knowledge of economic theory and say it doesnt apply in the real world, but there is a reason economists get paid very well, at least the good ones.

 

[bigbirney420 10+ year member]

I see your point...and agree. Except with the speculator part. I gotta go, but there is an explanation in CT why blaming future speculators doesn't work.

I agree, and its not all thier fault, some can be blamed on them. My only point was that you cant blame one thing on the economy, then Bumpin Buick decided to attack my post without a whole lot of knowledge.

 

[richierich75 10+ year member]

Well, yes. I never argued that it didn't...just that it doesn't have to. I am not going to lie and say I don't believe there aren't winks and smiles being passed from members of the FOMC and member banks. I believe they collude...with little doubt. I also believe it is good at times that they do collude....otherwise the banks could turn on the govt...so to speak.

right, it doesn't have to; but your basis of arguement was that what I said was wrong and that I was an idiot because "it doesn't have to," only to now agree with me to a certain degree that by cutting the federal interest rate or federal target rate that the market in fact did follow their lead; for simplicity sake //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

 

[duece212 5,000+ posts]

without a common meaning, or definition how can we communicate.
You guys talk shit about Flip's knowledge of economic theory and say it doesnt apply in the real world, but there is a reason economists get paid very well, at least the good ones.

Not what I'm saying at all //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

Just wasn't the answer to the question I asked, I guess I also think in black and white most of the time, but have to think out of the box occasionally. No need to get upset //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

 

[richierich75 10+ year member]

your so dense, the market followed suit for ONE DAY so you can generalize that because of that one day the market always follows suit?

read the whole fvckin thread dipsh!t

 

[richierich75 10+ year member]

Not really worried about a definition, just real world case. If oil could be undervalued with adequate supply for the current time, why couldn't it be overvalued at a certain price with the exact same supply?

It can and probably is Duece.

 

[lilmaniac2 5,000+ posts]

read the whole fvckin thread dipsh!t

I did and apparently your to dense to read my posts.

I give up on you.

I'm finding ca.com more and more of a lost cause

 

[bigbirney420 10+ year member]

I'm finding ca.com more and more of a lost cause

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