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Oil Market Bailout

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Top 75 Contributor
448 Posts
Points 7,385
pairunoyd posted on Thu, Oct 16 2008 11:14 AM

I'm assuming that people invest in oil. Well, the news today is very bad:

"The price of oil continued to fall Thursday after a government report showed the nation's supplies of crude and gasoline grew more than expected last week.

Light, sweet crude for November delivery was down $4.73 to $68.87 a barrel on the New York Mercantile Exchange. Oil was down $1.34 a barrel just before the report was released at 11 a.m. ET.

The drop brought prices to levels not seen in more than a year. The last time oil settled at these levels was on August 22, 2007 when it closed at $69.26. It has lost about half of its value since hitting an all-time high above $147 a barrel in July."

I think we should bail out the oil market before gas prices plummet! I've seen it as low as $2.99/gallon. I think it should stay at a minimum of $4/gallon so as to avoid decimating the energy and oil markets.

Here, here?

Full article:  http://money.cnn.com/2008/10/16/markets/oil/index.htm

 

You know what? This is what we need. We need the Austrian School to step up and pump out some sophisms that follow the current bailout logic. It would be bloody brilliant and THE BEST WAY to explain the fallacies currently at play.

Come on you PhD's! Come on and help us out. Create a media release. WE NEED YOU!

"The best way to bail out the economy is with liberty, not with federal reserve notes." - pairunoyd

"The vision of the Austrian must be greater than the blindness of the sheeple." - pairunoyd

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Top 500 Contributor
88 Posts
Points 1,935

This is brilliant. I think you are on to something here. Apparently corrections are allowed only in some markets, but not others.

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Top 500 Contributor
40 Posts
Points 500

Its not just "people" that invest in oil, its been show that there are a lot of pension funds for teachers, policemen, firefighters, etc that have invested in "Big Oil". So if you are against a bailout for the oil industry you are against teachers, and if you are against teacher you are against children, you don't hate children do you???

Think of the children, rescue the oil industry!

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Top 100 Contributor
392 Posts
Points 5,750
Kakugo replied on Fri, Oct 17 2008 8:59 AM

This is very serious news for Al Gore and his EU buddies: cheaper oil will mean people will drive around more and will use more heating oil this winter. Something must be done about it!

The oil market is like every other market: there has been a bubble, and that bubble is now bursting. The only thing that's keeping prices still this high is inflation and political pressure (there's still saber rattling at Iran's doorstep), otherwise they would litterally plummet. Of course the bigger the bubble, the bigger the burst.

I am no economist: I have just read a few books by Mises and Rothbard and some articles I find online. Austrian economics is simply so sound that even a redneck like me can understand it. Can it be so hard to explain it to the world?

 Yes, it's time for the Dr Goebbels show!

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