Home › Forums › Financial Markets/Economics › Oil *was* a bubble
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donaldduckmoore.
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October 9, 2008 at 9:34 PM #285087October 10, 2008 at 12:13 AM #284895
donaldduckmoore
ParticipantDemand destruction?! Will you explain and give more facts. Oil price came down from $150 to less than $90 in two months. Do we drive less? I don’t think so. I still see lots of cars on the freeway. It was a bubble.
October 10, 2008 at 12:13 AM #285185ParticipantDemand destruction?! Will you explain and give more facts. Oil price came down from $150 to less than $90 in two months. Do we drive less? I don’t think so. I still see lots of cars on the freeway. It was a bubble.
October 10, 2008 at 12:13 AM #285206ParticipantDemand destruction?! Will you explain and give more facts. Oil price came down from $150 to less than $90 in two months. Do we drive less? I don’t think so. I still see lots of cars on the freeway. It was a bubble.
October 10, 2008 at 12:13 AM #285227ParticipantDemand destruction?! Will you explain and give more facts. Oil price came down from $150 to less than $90 in two months. Do we drive less? I don’t think so. I still see lots of cars on the freeway. It was a bubble.
October 10, 2008 at 12:13 AM #285238ParticipantDemand destruction?! Will you explain and give more facts. Oil price came down from $150 to less than $90 in two months. Do we drive less? I don’t think so. I still see lots of cars on the freeway. It was a bubble.
October 10, 2008 at 8:53 AM #285009OwnerOfCalifornia
Participant[quote=stockstradr]Oil wasn’t and isn’t in a bubble.
Rich was and remains correct.
Oil has simply been hit with extreme demand destruction, deflationary pressures due to global economy recession / depression.[/quote]
Exactly. It’s not like oil went to $147, “crashed” to $80 (a number considered obscenely high just 18 months ago), and everyone lived happily ever after driving their SUV’s 50 miles to and from their overvalued McMansions.
Oil went too high and the global economy entered a state of severe malfunction. I’ve often taken issue with some of my fellow Peak Oilsters who believe that it is to the moon with the price of oil. The spot price of WTI is just a silly little (almost insignificant) number. At some price point, the economy breaks. Voluntarily or not, the citizens of the world accept an adjustment to their standard of living, oil recovers, rinse and repeat.
October 10, 2008 at 8:53 AM #285299Participant[quote=stockstradr]Oil wasn’t and isn’t in a bubble.
Rich was and remains correct.
Oil has simply been hit with extreme demand destruction, deflationary pressures due to global economy recession / depression.[/quote]
Exactly. It’s not like oil went to $147, “crashed” to $80 (a number considered obscenely high just 18 months ago), and everyone lived happily ever after driving their SUV’s 50 miles to and from their overvalued McMansions.
Oil went too high and the global economy entered a state of severe malfunction. I’ve often taken issue with some of my fellow Peak Oilsters who believe that it is to the moon with the price of oil. The spot price of WTI is just a silly little (almost insignificant) number. At some price point, the economy breaks. Voluntarily or not, the citizens of the world accept an adjustment to their standard of living, oil recovers, rinse and repeat.
October 10, 2008 at 8:53 AM #285321Participant[quote=stockstradr]Oil wasn’t and isn’t in a bubble.
Rich was and remains correct.
Oil has simply been hit with extreme demand destruction, deflationary pressures due to global economy recession / depression.[/quote]
Exactly. It’s not like oil went to $147, “crashed” to $80 (a number considered obscenely high just 18 months ago), and everyone lived happily ever after driving their SUV’s 50 miles to and from their overvalued McMansions.
Oil went too high and the global economy entered a state of severe malfunction. I’ve often taken issue with some of my fellow Peak Oilsters who believe that it is to the moon with the price of oil. The spot price of WTI is just a silly little (almost insignificant) number. At some price point, the economy breaks. Voluntarily or not, the citizens of the world accept an adjustment to their standard of living, oil recovers, rinse and repeat.
October 10, 2008 at 8:53 AM #285343Participant[quote=stockstradr]Oil wasn’t and isn’t in a bubble.
Rich was and remains correct.
Oil has simply been hit with extreme demand destruction, deflationary pressures due to global economy recession / depression.[/quote]
Exactly. It’s not like oil went to $147, “crashed” to $80 (a number considered obscenely high just 18 months ago), and everyone lived happily ever after driving their SUV’s 50 miles to and from their overvalued McMansions.
Oil went too high and the global economy entered a state of severe malfunction. I’ve often taken issue with some of my fellow Peak Oilsters who believe that it is to the moon with the price of oil. The spot price of WTI is just a silly little (almost insignificant) number. At some price point, the economy breaks. Voluntarily or not, the citizens of the world accept an adjustment to their standard of living, oil recovers, rinse and repeat.
October 10, 2008 at 8:53 AM #285352Participant[quote=stockstradr]Oil wasn’t and isn’t in a bubble.
Rich was and remains correct.
Oil has simply been hit with extreme demand destruction, deflationary pressures due to global economy recession / depression.[/quote]
Exactly. It’s not like oil went to $147, “crashed” to $80 (a number considered obscenely high just 18 months ago), and everyone lived happily ever after driving their SUV’s 50 miles to and from their overvalued McMansions.
Oil went too high and the global economy entered a state of severe malfunction. I’ve often taken issue with some of my fellow Peak Oilsters who believe that it is to the moon with the price of oil. The spot price of WTI is just a silly little (almost insignificant) number. At some price point, the economy breaks. Voluntarily or not, the citizens of the world accept an adjustment to their standard of living, oil recovers, rinse and repeat.
October 10, 2008 at 9:12 AM #285029Arraya
Participant[quote=donaldduckmoore]Demand destruction?! Will you explain and give more facts. Oil price came down from $150 to less than $90 in two months. Do we drive less? I don’t think so. I still see lots of cars on the freeway. It was a bubble.[/quote]
Well that was just brilliant in depth analysis. Sounds more like a faith based diagnosis. Please get familiar with the elasticity of oil. In July china decreased consumption by 10%.
There are very strong fundamental reasons for the movements in price. Though no doubt investment mechanism played a role in some amplification of prices but really the trend is important.
I’d even argue that our market has absolutely no way to put a price on the life blood of industrial civilization but that is another discussion all together.
October 10, 2008 at 9:12 AM #285319Participant[quote=donaldduckmoore]Demand destruction?! Will you explain and give more facts. Oil price came down from $150 to less than $90 in two months. Do we drive less? I don’t think so. I still see lots of cars on the freeway. It was a bubble.[/quote]
Well that was just brilliant in depth analysis. Sounds more like a faith based diagnosis. Please get familiar with the elasticity of oil. In July china decreased consumption by 10%.
There are very strong fundamental reasons for the movements in price. Though no doubt investment mechanism played a role in some amplification of prices but really the trend is important.
I’d even argue that our market has absolutely no way to put a price on the life blood of industrial civilization but that is another discussion all together.
October 10, 2008 at 9:12 AM #285341Participant[quote=donaldduckmoore]Demand destruction?! Will you explain and give more facts. Oil price came down from $150 to less than $90 in two months. Do we drive less? I don’t think so. I still see lots of cars on the freeway. It was a bubble.[/quote]
Well that was just brilliant in depth analysis. Sounds more like a faith based diagnosis. Please get familiar with the elasticity of oil. In July china decreased consumption by 10%.
There are very strong fundamental reasons for the movements in price. Though no doubt investment mechanism played a role in some amplification of prices but really the trend is important.
I’d even argue that our market has absolutely no way to put a price on the life blood of industrial civilization but that is another discussion all together.
October 10, 2008 at 9:12 AM #285363Participant[quote=donaldduckmoore]Demand destruction?! Will you explain and give more facts. Oil price came down from $150 to less than $90 in two months. Do we drive less? I don’t think so. I still see lots of cars on the freeway. It was a bubble.[/quote]
Well that was just brilliant in depth analysis. Sounds more like a faith based diagnosis. Please get familiar with the elasticity of oil. In July china decreased consumption by 10%.
There are very strong fundamental reasons for the movements in price. Though no doubt investment mechanism played a role in some amplification of prices but really the trend is important.
I’d even argue that our market has absolutely no way to put a price on the life blood of industrial civilization but that is another discussion all together.
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