From Standard oil to big oil
Commy
Posts: 4,984
worth checking out.
'the recession started not when the housing market bubble burst but when oil reached $100 a barrel'
http://www.youtube.com/watch?v=MK7ygnheZq4
'the recession started not when the housing market bubble burst but when oil reached $100 a barrel'
http://www.youtube.com/watch?v=MK7ygnheZq4
Post edited by Unknown User on
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In fact, the articles that the video shows are titled "...may lead to recession."
So, as ridiculous as it may sound, the articles that the video uses to substantiate a connetion between oil prices and a US recession are actually articles that speculate on the possibility of a coming recession. Check 4:34 - 4:36 of the vid and you'll see what I mean.
LOL...youtube videos.
Truth be told, during 2006-2007, the predatory lending practices of independent mortgage brokers reached their peak, with the use of falsified applications and No Income No Asset borrowing criteria.
That unrestricted, predatory lending practice fueled the economy to its peak, which in turn caused oil prices to spike as oil prices are based mostly on futures contracts, which are speculatory by nature.
But she does raise a valid point that the problem lies in the deregulation of the oil futures market, and that this deregulation points to a broader conspiracy. She's right on the mark with that statement. The deregulation that she is referring to is the Commodity Futures Modernization Act of 2000, which contains an "Enron" clause, which basically allows energy trading to exist in its own playing field.
That Act was pushed through congress by none other than Phil Gramm, who is indisputably in the back pockets of energy lobbyists.
Other than that, her assertions are flat out wrong and misguided.
http://forums.pearljam.com/showthread.php?t=272825
I don't think you can deny that oil has more of an impact on our economy than the housing market. And that in previous recessions (80's for example) oil hit $100 a barrel at about the time the recession started. this one is no different.
In the vid she was talking about the unregulated oil market-ICE, and how prices are basically decided by the oil companies, which affects our regulated markets. also that oil shouldn't be traded, its too important given its impact on the economy. so many industries rely on oil...how well the housing industry is doing is a result of how well other markets are doing-ie oil prices could impact the housing industry but the reverse isn't true.
If they were really reputable, they wouldn't cite speculative news articles to substantate supposed fact.
Oil prices never went above $70 in 2006 dollars during the 80's recession. In fact, it wasn't until the Fed raised rates in an attempt to control inflation that the economy actually fell into a recession.
Further, the economy fell into yet another recession in the late 80's and early 90's, but where were oil prices then?
Yes, I know. That's what I was saying.
That statement is totally lacking in any factual basis. I can explain it to you if you want. But, I think part of you already knows why it's fiction.
http://forums.pearljam.com/showthread.php?t=272825
It seems to make more sense that when oil prices rise other industries are affected...and that when something like the housing market sees an increase in prices it wouldn't have the same affect.
it was an interview. they cited nothing.