Skip to Content.
Sympa Menu

homestead - Re: [Homestead] Oil bubble burst

homestead AT lists.ibiblio.org

Subject: Homestead mailing list

List archive

Chronological Thread  
  • From: bob ford <bobford79 AT yahoo.com>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Oil bubble burst
  • Date: Sat, 11 Oct 2008 10:26:49 -0700 (PDT)

What the author said is factually accurate. He was talking about the
'bubble', not the entire history of oil; just as someone might talk about the
real estate bubble, not the entire history of real estate value.

You say " recessions invariably result in very low oil prices". My memory of
the Carter years recession is that oil prices climbed. I don't know how to
explain my memory in economic terms, but we had high unemployment, inflation,
and I believe we did have the 2 consequetive quarterss of negative gdp
growth. Even if not, we certainly fit the general definitions of a
recession, during that period of time . What we didn't have was deflation.

I don't think the author is making a point about 'peak oil' or anything like
that. I think he is just saying oil became way too expensive, way too fast.
Just like real estate and oil are both finite resources; they can still be,
obviously, overpriced for any moment in time . In this environment, they
have both proven to be much overpriced, thus the term 'bubble'
..........bobford


--- On Sat, 10/11/08, Clansgian AT wmconnect.com <Clansgian AT wmconnect.com> wrote:

> From: Clansgian AT wmconnect.com <Clansgian AT wmconnect.com>
> Subject: Re: [Homestead] Oil bubble burst
> To: homestead AT lists.ibiblio.org
> Date: Saturday, October 11, 2008, 9:50 AM
> The article's author needs to take a more careful look
> at the history of oil
> prices. Just a few months before 9-11, oil had been
> trading at around $20 a
> barrel. Some months after 9-11 oil fluxuated between $25
> and $30. In 2006
> the big news was that oil had slowly risen to *nearly* $40
> a barrel. The
> concern was that there had never been a time in US history
> where oil had been more
> than $40 a barrel without it causing a recession.
>
> While high oil prices help bring on recessions, recessions
> invariably result
> in very low oil prices. And now it has dropped to a mere
> $79. It's the old
> "hurray, I'm a llama again" bit.
>
> OPEC is determined to keep oil at $100 in the long term.
> They are meeting
> soon to that effect.
> <BR><BR>**************<BR>New MapQuest
> Local shows what's happening at your destination.
> Dining, Movies, Events, News &amp; more. Try it out
> (http://local.mapquest.com/?ncid=emlcntnew00000002)</HTML>
> _______________________________________________
> Homestead list and subscription:
> http://lists.ibiblio.org/mailman/listinfo/homestead
> Change your homestead list member options:
> http://lists.ibiblio.org/mailman/options/homestead/bobford79%40yahoo.com
> View the archives at:
> https://lists.ibiblio.org/sympa/arc/homestead







Archive powered by MHonArc 2.6.24.

Top of Page