Tuesday, January 13, 2015
Oil has dropped to just about $45 a barrel.
Remember, 12 months ago it was trading at $110 mostly due to rat speculators putting profit over patriotism, which is always the way..
Also remember, one barrel of oil ultimately makes 42 gallons of gasoline so that means at this moment at least the price of gasoline before corporate profit and the Greed of Federal, State, County and Municipality governments to add burdensome taxes is..
On Bloomberg TV, the first question asked by the very attractive 85lb waif woman who is far too beautiful to really know the difference between a 'stock', 'stick' and a 'stork' without someone telling her through the earpiece, asks how this will affect financial institutions..
Because That is the priority.. How they will fare..
And the talking meat stick analyst explains that oil is "a key growth industry in the US" and tries to concoct an argument that dropping oil prices hurts the non-existent Obama-contrived 'recovery'
Specifically, banks and other institutions have stepped up lending and have a lot invested, and thus it is 'bad' if the oil corporations can't make enough profit to pay their loans back on time, etc.. etc..
~ "I's be a droppin'.. Don' kno' why but.. Yessir, I's be a droppin"
Last year the big 5 oil companies combined made $95 billion in profit which was low for their standards.. So they have plenty of financial reserves to pay off their loans.
Of course low oil prices hurt stock valuations for oil based corporations..
What more can I add.. A&G will never hope gas doubles back up to $4/gal and beyond so some everyday dum-dum small-i investor can see a profitable return on his/her investment then act like a smart-arse know it all at parties.
Should have taken that $$ and played roulette.
~ "Dealer, I place $100 on double D's.. um.. i mean double-zeroes
Based on the weekly 15 gallon fill up over 52 weeks example that is constantly used here, a mere 5 cent drop in the price of one gallon of gasoline, saves each driver $39 annually
$39 is enough to buy thirteen 12-packs of soda on sale
So remember kids, what is good for Big-Business, Banks and Investors is always bad for you, and what is good for you, is always bad for them..
Time to get off the hamster wheel and stop being a Wall St cheerleader
Posted by Susquehanna at Tuesday, January 13, 2015