jkan0525 wrote:A night person who ends up being an early morning person because I stayed up so late.
What would Juan Valdez think about the rising gas prices?
He said "Oil futures are based upon the best guess of it's future worth. They do
not determine what someone will actually pay for the oil in the future.
If oil futures are bid up to $120 a barrel, that does not mean that will
be the market price when the future is due. It is normally that the
price of commodity will not be the same price as that on a futures
contract. The difference is the profit or lose realized by the person
holding the futures contract."
"While it is easy to hold stock certificates in a bank, when it comes time
to pay off on your futures contract, most people have to sell the oil,
they do not have empty tankers sitting around to hold the oil waiting for
a better price. They will have to sell the oil at the market price,
which is determined by supply and demand. Trust me, if the US reduced it
consumption by 25% and China reduced it's consumption by 25% we would see
one hell of a drop in oil prices."
"There is one reason for the increase of gas prices. There is an increase in demand,
without any increase in supply. Consumers will not pay for better fuel
efficient cars until the cost of the gas guzzlers make it worth their while.
The fact that a few people buy fuel efficient cars, does not negate the
fact that too many people are buying gas guzzling SUV and Trucks, while
keeping their home thermostat set at 78 degrees."
"Heck even Al Gore who was dumb as dirt, knew you had to raise the
cost of gas to make it economically viable to find alternative energy
sources. Al's idea was to tax gas $3/gal and use the tax to find alternative
energy."
McDonald's or Carl's Jr?