C.Robin Posted October 24, 2021 Report Share Posted October 24, 2021 4 mins ago, Sudsy said: (doesn't remember the last time gas prices shot up - triggering the great recession) Gas prices literally have nothing to do with the Great Recession. Subprime mortgages and generally failing to regulate the financial industry caused the Great Recession. Gas prices were artificially low last year due to much less demand. Now the demand has gone up significantly and as expected the prices have gone up again. We have some of the lowest gas prices in the developed world due to low gas taxes and significant oil/gas subsidies. Rising prices suck, especially for the many Americans out there who insist on buying a way larger vehicle than they need, but expecting 2020 prices to last long was unrealistic. Fergal, BrianC86, KnewBee and 2 others 5 Link to comment Share on other sites More sharing options...
Sudsy Posted October 24, 2021 Report Share Posted October 24, 2021 24 mins ago, C.Robin said: Gas prices literally have nothing to do with the Great Recession. Subprime mortgages and generally failing to regulate the financial industry caused the Great Recession. Gas prices were artificially low last year due to much less demand. Now the demand has gone up significantly and as expected the prices have gone up again. We have some of the lowest gas prices in the developed world due to low gas taxes and significant oil/gas subsidies. Rising prices suck, especially for the many Americans out there who insist on buying a way larger vehicle than they need, but expecting 2020 prices to last long was unrealistic. Here's an article from that raging left rag The Atlantic that disagree's with you The fuel cost spike was the pin the popped the bubble............ Rick Santorum Is Right: Gas Prices Caused the Great Recession By Derek Thompson FEBRUARY 8, 2012 ... but it was one of many factors! "We went into a recession in 2008. People forget why," Rick Santorum told an audience recently. "They thought it was a housing bubble. The housing bubble was caused because of a dramatic spike in energy prices that caused the housing bubble to burst ... People had to pay so much money to air condition and heat their homes or pay for gasoline that they couldn't pay their mortgage." This sounds stupid to some writers. (Most of these writers were more likely to find Santorum stupid before he made that comment.) But it's not very stupid, at all. In 2009, economist James Hamilton published a paper that retroactively forecast what an oil shock, like the one we experienced in 2007-08, would do to GDP. And guess what? His model accurately predicated much of the collapse in GDP that resulted from the Great Recession -- as if there had been no housing bubble or financial crisis! The oil spike was that bad. Still, there was a housing bubble. And there was a financial crisis. How do we account for them and still hold onto the gas story? Here's a one-paragraph theory of the Great Recession that begins with gasoline. Cheap gas ruled in the 1990s. This encouraged families to settle down farther from the cities where they worked. In the 2000s, super-low interest rates, declining lending standards, and an appetite for mortgages on Wall Street (among other factors) further encouraged sprawl and residential development in the 'burbs. As the price of gas went up, families stopped buying homes 30 minutes from the city. For folks shacking up in the exurbs, higher gas bills ate into mortgage money. For companies, higher energy bills shocked productivity. Classic oil-shock + housing development arrested + financial crisis = Great Recession. There appears to be pretty strong correlation (if not causation) between national gas prices, which accelerated after 2005, and housing starts, which declined after 2005. Here's a graph of gas prices and housing starts indexed in the year 2000 (I've pulled back the lens to 1990). Santorum's mistake isn't in thinking higher gas prices mattered. Of course energy prices matter. Low energy prices contributed to the housing boom, just as $4 gas probably pricked the housing bubble. But his mistake is in thinking it was the only factor. Derek Thompson is a staff writer at The Atlantic, where he writes about economics, technology, and the media. TimS and DeepBlue 2 I just wanta play everyday despite small nagging injuries -- and go home to a woman who appreciates how full of crap I truly am. ~ Crash Davis Social Distancing since 1962 Link to comment Share on other sites More sharing options...
Popular Post jimmy z Posted October 24, 2021 Popular Post Report Share Posted October 24, 2021 Rising gas prices are created. They just don't happen. While we are told it's "the demand " the people aren't stupid. We see right through the deception. We can all thank Mr. Biden for this new rise in price. If ya don't agree then ya blind, lol JimJ, JimK, hunter123 and 13 others 16 AKN-2 USS Sagittarius BE ENCOURAGING, NOT DISCOURAGING <*((())))>< <*((())))>< Link to comment Share on other sites More sharing options...
Skin Posted October 24, 2021 Report Share Posted October 24, 2021 The worst thing is paying for stuff that you did not think was going to cost much. Last year it was a pleasure that fill up at the pump. Now I wince every time. When I burn $50 and feel like I have not gone anywhere or done anything, I just think, more bills are coming, how about if I actually do not go anywhere and do not do anything, and just save the $50. Buying a microcar or moving? Not trivial decisions. Nor are they short term solutions. The only real short term solution is spend less on (kids, food, health, savings) and more on gas. https://www.newsweek.com/california-town-charging-nearly-8-gallon-gas-prices-hit-7-year-high-across-us-1641277?amp=1 hunter123 1 Link to comment Share on other sites More sharing options...
Goldy Posted October 24, 2021 Report Share Posted October 24, 2021 11 hours ago, lurejunkie00 said: I’ve spent more on gas the last month than any two months last year. I can’t afford to drive 90 minutes each way. #FJB Gas by me in jersey went from 3.15 to 3.50 in a mattwr of a week. I drive 24k miles a year in a pickup and avg 18mpg. Its getting expensive. i live closer to the water than you do, but the trips just to go check out a few spots and drive in circles are no longer happening. hunter123 1 Link to comment Share on other sites More sharing options...
John P Posted October 24, 2021 Report Share Posted October 24, 2021 Can't wait to hear the complaints next year when the boating season gets started, Maybe the bass will get a break when the boat guys see $5.00+a gal. How about 4 - 300 HPs on the stern LOLs . These boats get about 2 MPGs so going offshore will be pretty expensive for a few stripers. hunter123 1 Link to comment Share on other sites More sharing options...
squidder 329 Posted October 24, 2021 Report Share Posted October 24, 2021 Funny I have two friends who are brandon fans well no so much anymore. I warned them about gas prices would go up and they laughed it off but they aren't laughing now. Two relatively new boats will be sitting at the dock a lot more. ridenfish, TheKnot, DeepBlue and 2 others 5 Link to comment Share on other sites More sharing options...
Mark L Posted October 24, 2021 Report Share Posted October 24, 2021 1 hour ago, jimmy z said: Rising gas prices are created. They just don't happen. While we are told it's "the demand " the people aren't stupid. We see right through the deception. We can all thank Mr. Biden for this new rise in price. If ya don't agree then ya blind, lol Totally agree with Jim, Biden closed the pipe line and now we are buying oil again. Thank Joe and dem party. WannaBe1982, hunter123, Lou T and 5 others 8 Link to comment Share on other sites More sharing options...
hunter123 Posted October 24, 2021 Report Share Posted October 24, 2021 (edited) 15 mins ago, Mark L said: Totally agree with Jim, Biden closed the pipe line and now we are buying oil again. Thank Joe and dem party. Problem is when creepy joe begged opec to increase the oil, they told him to go get F*^Ked. Then the groper went to Putin , Putin didn't even give him a reply. No body in the world respects this bumbling moron, well except his moron minions who voted for him. I'm going to get back into fw again like scooby said. At least while the gas is high. I live on a river, but man I love saltwater fishing. Edited October 24, 2021 by hunter123 Popasilov, afterhours and DeepBlue 3 Capt, Frank Mundus. The man, the myth, the legand. Link to comment Share on other sites More sharing options...
Stryper Snyper Posted October 24, 2021 Report Share Posted October 24, 2021 49 mins ago, squidder 329 said: Funny I have two friends who are brandon fans well no so much anymore. I warned them about gas prices would go up and they laughed it off but they aren't laughing now. Two relatively new boats will be sitting at the dock a lot more. Like used cars boat prices skyrocketed the last 1 1/2 years. Do you think they will crash with the cost of fuel going through the roof? I don't see used cars coming down anytime soon. I see Cuba. hunter123 1 Link to comment Share on other sites More sharing options...
Flip n Dip Posted October 24, 2021 Report Share Posted October 24, 2021 Don’t panic people. Gas prices go up and they also come down. High gas prices are transitory. This too shall pass. Stop pointing the finger and playing the blame game. The world has gone through a lot lately but things will eventually return to normal. It always does. hunter123, HugeDinghy, KnewBee and 5 others 1 7 Link to comment Share on other sites More sharing options...
Kones1 Posted October 24, 2021 Report Share Posted October 24, 2021 Wait , wait , wait . One question . One question. Would it be this way if Trump were still president ? I think not. What ? HugeDinghy, Lou T, WannaBe1982 and 3 others 6 Link to comment Share on other sites More sharing options...
Buckscorider Posted October 24, 2021 Report Share Posted October 24, 2021 hunter123 1 Crushed barbs save fish, keep that rod bent! Link to comment Share on other sites More sharing options...
Skin Posted October 24, 2021 Report Share Posted October 24, 2021 6 mins ago, Flip n Dip said: Don’t panic people. Gas prices go up and they also come down. High gas prices are transitory. This too shall pass. Stop pointing the finger and playing the blame game. The world has gone through a lot lately but things will eventually return to normal. It always does. In July, Biden said that gas prices were temporarily. Last week he said that we can expect to see them persist through 2022. I would expect that the fuel reserves will be opened up in late summer in time for prices to drop a couple of dollars by the midterms. We have a lot of reserves, that were topped off when the last guy was around. hunter123, WannaBe1982 and Kones1 3 Link to comment Share on other sites More sharing options...
Skin Posted October 24, 2021 Report Share Posted October 24, 2021 https://www.worldoil.com/news/2020/3/13/trump-to-fill-us-strategic-petroleum-reserve-to-the-very-top hunter123 1 Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to register here in order to participate.
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now