Falling gas prices indicate a poor economy?

[LatinaLoca]

I'm sure most of us are enjoying the gas prices hitting new lows everyday but just recently I heard that the falling prices point to a very weak enconomy. Any thoughts on this? How low are the gas prices in your area? $1.45 here in TN.

[gixxer0.6g]

Originally Posted by LatinaLoca

I'm sure most of us are enjoying the gas prices hitting new lows everyday but just recently I heard that the falling prices point to a very weak enconomy. Any thoughts on this? How low are the gas prices in your area? $1.45 here in TN.

I heard we're at the start of deflation. Which isn't good for the economy. It has a lot to do with people buying less so companies need less workers so unemployment goes up.

[daltrey]

$1.47 here, It seems every week another one of my friends are being laid off. I'm one of the few left at my printing company as it is. I sure hope Obama has a plan.

[Mr.Creatine]

the u.s.a, the americas and europe are affected by this.

asia seems unaffected much so far.

[guest89]

Yeah, my dad works in the oilfield and according to him we are much better off when gas prices are high... Right now oilfield work around here is pretty slow. My dads been out of a job for months. Although he hasn't really been looking for a new one, he's been enjoying his free time and waiting for someone to call him with a job offer (haha).




While it seems sweet that gas prices are low, for people who work in the oilfield industry and make decent money its bad. For example, back when gas was at an all time high my dad was making over 65-68$ an hour, and if he'd have been willing to work out of state he could have easily been making $1000-$1500 a day. (Contract welder)

Originally Posted by Mr.Creatine

the u.s.a, the americas and europe are affected by this.

asia seems unaffected much so far.

Asian stock markets plummet when US markets fall... Its all pretty related in modern industrial nations I think, perhaps with the exception of a few. Overall whats bad for the US is usually bad for other westernized nations though.

[LatinaLoca]

Originally Posted by daltrey

$1.47 here, It seems every week another one of my friends are being laid off. I'm one of the few left at my printing company as it is. I sure hope Obama has a plan.

Where are you? That really stinks about people getting laid off . I wonder how bad all of this will really get? Obama said yesterday that he expects it to get worse before it gets better.

[Feny]

Originally Posted by LatinaLoca

I'm sure most of us are enjoying the gas prices hitting new lows everyday but just recently I heard that the falling prices point to a very weak enconomy. Any thoughts on this? How low are the gas prices in your area? $1.45 here in TN.

Low gas prices indicate a falling aggregate demand... Which isn't good for the economy at all...

Originally Posted by gixxer0.6g

I heard we're at the start of deflation. Which isn't good for the economy. It has a lot to do with people buying less so companies need less workers so unemployment goes up.

True... check out the Fed's latest H15 release... the treasury inflation protected securities (TIPS) are yielding higher then a regular treasury bond... this basically means the bond market is predicting deflation...

The scariest part about this is that the spreads between the TIPS and tbonds are apart all the way for 7 years... Then the 10 year spread is back in favor of inflation...



Basically deflation for several years, then a very very high inflation is predicted....

[BIGDAWGZ28]

Originally Posted by guest89

Yeah, my dad works in the oilfield and according to him we are much better off when gas prices are high... Right now oilfield work around here is pretty slow. My dads been out of a job for months. Although he hasn't really been looking for a new one, he's been enjoying his free time and waiting for someone to call him with a job offer (haha).




While it seems sweet that gas prices are low, for people who work in the oilfield industry and make decent money its bad. For example, back when gas was at an all time high my dad was making over 65-68$ an hour, and if he'd have been willing to work out of state he could have easily been making $1000-$1500 a day. (Contract welder)

Low gas prices are good for almost everyone..For the past year or two companies were charging fuel surcharges for deliveries..That raises the prices on just about everything..People who were having to put $50 in gas into their cars to get to work are now only having to do $25..More cash in their pockets.

[Mr.Creatine]

Originally Posted by guest89

Yeah, my dad works in the oilfield and according to him we are much better off when gas prices are high... Right now oilfield work around here is pretty slow. My dads been out of a job for months. Although he hasn't really been looking for a new one, he's been enjoying his free time and waiting for someone to call him with a job offer (haha).




While it seems sweet that gas prices are low, for people who work in the oilfield industry and make decent money its bad. For example, back when gas was at an all time high my dad was making over 65-68$ an hour, and if he'd have been willing to work out of state he could have easily been making $1000-$1500 a day. (Contract welder)



Asian stock markets plummet when US markets fall... Its all pretty related in modern industrial nations I think, perhaps with the exception of a few. Overall whats bad for the US is usually bad for other westernized nations though.

then now i wonder why the japanese yen & chinese RMB is far more of value/worth than the american dollar or the pound.

[BenficaSS289]

Yeah Thomas Jefferson, John Adams, Andrew Jackson, Benjamin Franklin and the list goes on could have told you this recession was going to happen 200 years ago.

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
Thomas Jefferson, Letter to the Secretary of the Treasury Albert Gallatin (1802) 3rd president of US (1743 - 1826)

There are two ways to conquer and enslave a nation. One is by sword. The other is by debt.

-President John Adams

"The bold efforts the present bank has made to control the Government...are but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution, or the establishment of another like it."

-President Andrew Jackson

But only 100 years ago the man who signed the Fed into existence says....

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." -Woodrow Wilson, after signing the Federal Reserve into existence

[LatinaLoca]

Originally Posted by Feny

Low gas prices indicate a falling aggregate demand... Which isn't good for the economy at all...



True... check out the Fed's latest H15 release... the treasury inflation protected securities (TIPS) are yielding higher then a regular treasury bond... this basically means the bond market is predicting deflation...

The scariest part about this is that the spreads between the TIPS and tbonds are apart all the way for 7 years... Then the 10 year spread is back in favor of inflation...



Basically deflation for several years, then a very very high inflation is predicted....

So we should enjoy it while it lasts....great lol.

Originally Posted by BIGDAWGZ28

Low gas prices are good for almost everyone..For the past year or two companies were charging fuel surcharges for deliveries..That raises the prices on just about everything..People who were having to put $50 in gas into their cars to get to work are now only having to do $25..More cash in their pockets.

Wow, yeah it was costing me $80 to fill up the gas hog I have..I really should've gotten a more fuel efficiant truck.

Originally Posted by BenficaSS289

Yeah Thomas Jefferson, John Adams, Andrew Jackson, Benjamin Franklin and the list goes on could have told you this recession was going to happen 200 years ago.

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
Thomas Jefferson, Letter to the Secretary of the Treasury Albert Gallatin (1802) 3rd president of US (1743 - 1826)

There are two ways to conquer and enslave a nation. One is by sword. The other is by debt.

-President John Adams

"The bold efforts the present bank has made to control the Government...are but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution, or the establishment of another like it."

-President Andrew Jackson

But only 100 years ago the man who signed the Fed into existence says....

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." -Woodrow Wilson, after signing the Federal Reserve into existence

That gives me chill bumps.

[Jmh80]

Originally Posted by BIGDAWGZ28

Low gas prices are good for almost everyone..For the past year or two companies were charging fuel surcharges for deliveries..That raises the prices on just about everything..People who were having to put $50 in gas into their cars to get to work are now only having to do $25..More cash in their pockets.

(Bil oil engineer) No - low gas prices are NOT good for almost everyone. Prices are low because the economy is bad. Period.

In that case - no one should want low gas prices.




LL - it's lack of demand for mogas that has caused the price to drop. It will go back up when the economy recovers. Believe that.

Buy a better fuel efficient CAR (not truck) when you and your family can. It will pay off in the long run, IMO.

[BIGDAWGZ28]

Originally Posted by Jmh80

(Bil oil engineer) No - low gas prices are NOT good for almost everyone. Prices are low because the economy is bad. Period.

In that case - no one should want low gas prices.




LL - it's lack of demand for mogas that has caused the price to drop. It will go back up when the economy recovers. Believe that.

Buy a better fuel efficient CAR (not truck) when you and your family can. It will pay off in the long run, IMO.

So when gas prices were low 2 years ago it was because the economy was bad??Or for how many years before that? Get real..So its better that food prices go up? Its better to have higher heating oil prices? So next time Im asked to donate to a local charity to help struggling people heat their homes I should tell them its in their best interest to pay higher oil prices?

[Jmh80]

Originally Posted by BIGDAWGZ28

So when gas prices were low 2 years ago it was because the economy was bad??Or for how many years before that? Get real..So its better that food prices go up? Its better to have higher heating oil prices? So next time Im asked to donate to a local charity to help struggling people heat their homes I should tell them its in their best interest to pay higher oil prices?

No.
You didn't get my point, brah. Read again.

[BIGDAWGZ28]

Originally Posted by Jmh80

No.
You didn't get my point, brah. Read again.

Maybe I did miss what you were trying to say

[TJ31]

$1.43 here in Spartanburg, SC. It seems to me that the high gas prices are what killed people's wallets earlier this year and now the economy is still paying the price. I know I adjusted my spending habits during that time and now Im used to them so I spend less. Is that a bad thing? Maybe for the places I used to go out to eat to and spend money at all the time, but not for my wallet. I guess there are good and bad things on both sides.

[shane130]

Originally Posted by guest89

While it seems sweet that gas prices are low, for people who work in the oilfield industry and make decent money its bad. For example, back when gas was at an all time high my dad was making over 65-68$ an hour, and if he'd have been willing to work out of state he could have easily been making $1000-$1500 a day. (Contract welder)



Asian stock markets plummet when US markets fall... Its all pretty related in modern industrial nations I think, perhaps with the exception of a few. Overall whats bad for the US is usually bad for other westernized nations though.

wow i really feeel bad for him, so while it was costing me 90 bucks to fill up my truck your dad was eating steak. really hard for me to feel bad for u guys

[Jmh80]

Originally Posted by shane130

wow i really feeel bad for him, so while it was costing me 90 bucks to fill up my truck your dad was eating steak. really hard for me to feel bad for u guys

He wasn't causing that, brah.

[lisast42]

$1.79 here in WI

[Komadori]

Originally Posted by shane130

wow i really feeel bad for him, so while it was costing me 90 bucks to fill up my truck your dad was eating steak. really hard for me to feel bad for u guys

If you can learn how to do underwater welding, you have it made. Unfortunately it is extremely dangerous, so that may be why they are paid as well as they are.

[Megin]

Originally Posted by LatinaLoca

I'm sure most of us are enjoying the gas prices hitting new lows everyday but just recently I heard that the falling prices point to a very weak enconomy. Any thoughts on this? How low are the gas prices in your area? $1.45 here in TN.

The best analogy is like losing weight when you are sick. It is NOT a good thing!
When one drops weight while being sick, it can actually make things worse for your body - now, throw gas prices in there to replace weight ..

Simple supply and demand. The demand for gas has not gone down (by much) and the supply has not gone up (by much) therefore - prices should be going UP not DOWN

Humm..

[tryn2getstrong]

Demand for gas absolutely has dropped. This fall americans finally stopped bitching and moaning and drove less causing a fairly significant drop in demand.

I'm a simple guy. Gas prices going down is good for me. If the economy slows down I'll work harder to compensate.

[daltrey]

Originally Posted by LatinaLoca

Where are you? That really stinks about people getting laid off . I wonder how bad all of this will really get? Obama said yesterday that he expects it to get worse before it gets better.

I'm in Corinth, MS. They just stopped building a toyota plant here that was going to make a highland SUV in tupelo. At least a thousand jobs gone now. I had alot of electrician friends making a thousand a week there and now there unemployed looking for work. Since the gas prices were skyrocketed and many people looking to buy more fuel efficient vehicles I guess toyota decided to hold off for now.

[XCONKILLER]

Originally Posted by LatinaLoca

I'm sure most of us are enjoying the gas prices hitting new lows everyday but just recently I heard that the falling prices point to a very weak enconomy. Any thoughts on this? How low are the gas prices in your area? $1.45 here in TN.

Gas here in Missouri is $1.39. If you want to know more see this, it's a good story. http://www.theoildrum.com/node/4846

Basically a bubble has popped, Americans have way to much debt and have maxed out. We will have to reset the economy and learn to live without dept. The deal is, most business operated off people being in debt - loans, credit cards. Now people are more wise and not building more debt or just maxed out on credit/debt. Nothing left to do but stop spending and have the economy be where it should have been all this time.

[CoffeCanSlayer]

This is what happens when money grubbing power whores are in control, simply-put. I work 3 days a week (in aircraft, also not a good time) at one job, 2 at another. Doesnt bother me, agree with Tom above, when money is low= have to work more to compensate. Im good with that.

[DanVanVliet]

Anyone remember the 70s and 80s America was told there was an oil shortage? We were gouged by uncle sam and the oil companys some quick cash to bail out war efforts slow the rising costs of housing. when you paying 100 dollors to fill your tank a week theres less for housing or other items so prices drop now that prices have droped gas prices come down to get things rolling again.

[tryn2getstrong]

Originally Posted by LatinaLoca

Where are you? That really stinks about people getting laid off . I wonder how bad all of this will really get? Obama said yesterday that he expects it to get worse before it gets better.

A lot of the layoffs are necessary because of the inefficiencies of many american companies. It's ridiculous how more efficient the Japanese automakers are compared to the American auto companies. Poor management and union contracts have crippled them.

Do you know that Ford actually pays people to sit at home? THey have a contract and Ford has to employ a certain number of people at each plant. If they don't need that many people then they get to stay home and get like 60% of their pay. On top of that a couple thousand of them actually go to a wharehouse and sit around and get full pay. Union contracts for these auto companies simply don't allow them to change to market conditions AND they've(automakers) done a piss poor job of managing their business.

[terribletriad]

Originally Posted by DanVanVliet

Anyone remember the 70s and 80s America was told there was an oil shortage? We were gouged by uncle sam and the oil companys some quick cash to bail out war efforts slow the rising costs of housing. when you paying 100 dollors to fill your tank a week theres less for housing or other items so prices drop now that prices have droped gas prices come down to get things rolling again.

That's a nice example.

It's also a sign of just how bad *WE* were getting screwed paying $4+/gal.

[911medic]

Originally Posted by guest89

Asian stock markets plummet when US markets fall... Its all pretty related in modern industrial nations I think, perhaps with the exception of a few. Overall whats bad for the US is usually bad for other westernized nations though.

Pretty much the way it works....the US gets the sniffles and the rest of the world gets the flu.

[Jmh80]

Originally Posted by terribletriad

That's a nice example.

It's also a sign of just how bad *WE* were getting screwed paying $4+/gal.

Hahahaha.

As if the US was the only country using crude oil at $140/bbl.