Best of luck on this issue.
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OPEC to America: Please don't pump so much oil!
- Thread starter wildfire
- Start date
Best of luck on this issue.
Nostremitus
Member
OPEC deserves to sleep in the bed they made.
They created our recession.
Fuel price hikes are what caused so many people who were just getting by to lose their homes. The choice was between filling their tanks to get to work or pay their other bills. OPEC doubled the price almost overnight. Those mass foreclosures along with small businesses dying out due to increase transportation costs and loss of customers rippling across the entire country caused the recession.
We had shitty practices coming out of the banks (as depicted in The Big Short), but that was the banks' upper management response to the economy collapsing around them. The banks didn't actually cause it, they just responded to it in a very poor manner. They saw the tidal wave coming because they saw the foreclosures before anyone else and chose to get rich off it through insider trading.
OPEC was directly responsible for the US economic collapse.
Even if the banks hadn't been asshats, the waves of foreclosures and losses of small businesses we're still happening. The banks were just a symptom of OPEC's financial attack on the rest of the world.
They created our recession.
Fuel price hikes are what caused so many people who were just getting by to lose their homes. The choice was between filling their tanks to get to work or pay their other bills. OPEC doubled the price almost overnight. Those mass foreclosures along with small businesses dying out due to increase transportation costs and loss of customers rippling across the entire country caused the recession.
We had shitty practices coming out of the banks (as depicted in The Big Short), but that was the banks' upper management response to the economy collapsing around them. The banks didn't actually cause it, they just responded to it in a very poor manner. They saw the tidal wave coming because they saw the foreclosures before anyone else and chose to get rich off it through insider trading.
OPEC was directly responsible for the US economic collapse.
Even if the banks hadn't been asshats, the waves of foreclosures and losses of small businesses we're still happening. The banks were just a symptom of OPEC's financial attack on the rest of the world.
China is #1 US trading partner and 2nd company to buy US crude export was from China.
It is question of cost though, big Chinese petroleum companies prefer to buy their own oil fields across the world to develop and lower the costs, hence them buying most of the oil from Iraq.
NobleXenon
Member
We are. China wants to one-up the US as the world leader in anti-fossil fuels. Reno-fucking-Nevada is becoming Lithium Valley. Swanson's law is shifting from 20% to 30%/40%. They see the writing on the wall.
Fuck'em.
Unknown Soldier
Member
So are you saying that, even assuming your worst case scenario, using 1/4 the oil we use now isn't a worthwhile goal that everyone should be striving for?
Tallshortman
Member
No, the housing crises and collapse was not primarily fueled by high oil prices, this post is insane.
To Far Away Times
Member
Dear OPEC,
Fuck off.
Sincerely,
America
Fuck off.
Sincerely,
America
I have wondered this. It honestly appears to be probable. It's always about this damn black gold - even though we are in the brink of renewable resources
No, that's not what I'm saying. Just saying expecting oil companies to go away is something you shouldn't expect.
Nostremitus
Member
Yes it was.
What do you think caused so many people to default on their loans all of a sudden, at the same time?
Coincidence?
?
A housing bubble of ridiculous housing prices fueled by cheap credit had nothing to do with it?
Nostremitus
Member
It worked fine as long as people could afford to pay. Doubling the price off oil caused mass foreclosures.
OPEC saw a weakness and started pushing Dominos.
BTW, things are only considered bubbles in hindsight. At the time it was just a great housing market.
It's still very very far away. 10 years minimum maybe even longer.
Human Resources
Member
some prince must have had to actually consider the cost for a second before buying that new Bugatti
Captain Tuttle
Member
The rise in oil prices was caused by the collapse of the dollar as The Fed ramped up quantitative easing
Colombia shouldn't have put so much of their economy into such a volatile market. They don't deserve to get fucked, but they really do need to wean off exporting oil being the #1 part of their economy.
Terrifyingly enough Dubai is the only diversified economy in the GCC.
SlipperyFishes
Banned
Please don't Prime the pump.
The Hamburglar
Banned
Wasn't that because of the Israelis and palastinians though? They tried to use oil to stop us from supporting Israel. Oh the horror.
sooperkool
Member
Had a great deal to do with it but..... OPEC has shown that with that kind of power they don't care about anything but themselves.
Liberty4all
Banned
I agree but low prices hurts Alberta.
The taxes on fuel in Europe drove us to use diesel (which is way more harmful to humans/environment) just so that we can squeeze a few more miles per gallon.
The Hamburglar
Banned
Having worked in banking before, during and after the financial crisis, I call bunk on this theory. Banks were doing NINJA loans left and right, and leveraging on securities that had zero value if something went wrong. It was entirely a bubble. The oil prices were just salt on a gaping wound.
Nostremitus
Member
That's not the way I remember it.
QE1 was 2007.
OPEC increased oil prices in 2003.
You've got it backwards.
In the UK diesel cars themselves are a bit more expensive, but cost of diesel as a fuel is only 1 or 2 pence more per litre.
Nostremitus
Member
OPEC starts shit in 2003.
The crash was in 2008.
The shit the banks pulled was in response to the ground level collapse created by OPEC. They kneecapped the American economy.
Spoiled Milk
Banned
Race to the bottom, I don't care.
No. Repealment of the major line items of Glass Stegal in 1999 was the start of the housing bubble and investable MBS's crash.
Edit - it's not even up for debate. Any finance class in college goes over this right now.
Hmm I wonder what other massive event happened in 2003 that led to this....
The Hamburglar
Banned
Billy_Pilgrim
Member
If ever there was a hive of scum and villainy, OPEC is it. Fuck them all the way to the moon.
Tal Shiar Agent
Banned
Also, there is no evidence that cheap oil stifles alternative energy innovation and deployment.
DietRob
i've been begging for over 5 years.
admittedly i have a hard time remembering the timing of when things happen. you are more than likely right. I guess sub $2 was more like the 2000's?
at some point in my 25+ year driving career that fuel was under a dollar. i won't venture a guess as to when that was but I do remember being able to nearly fill my tank with a tenner
The Hamburglar
Banned
Nah more like blaming the 2008 crisis on OPEC is stupid.
What I really wanna know is why petrol is still expensive in the uk if there's so much oil.
Nostremitus
Member
Yep, in 2003/2004 it shot up from ~$2 to the $4-$5 range.
This caused goods and services across the entire economy to increase in cost.
From the boardroom to the butcher, so to speak. Grocery prices, fuel, literally everything.
I could be wrong, but diesel is suppose to be more friendly on the environment.
I can't tell if you are being serious...
The increase in oil prices that you are mentioning is a result of the Iraq War...
Besides that, you are just spouting nonsense, it isn't oil prices that caused the collapse of the U.S economy which caused a world economic collapse in it's wake. I am pretty certain many economist would of realized what you are saying if that was the case, but it isn't.
Theonik
Member
Taxes, local monopolies/cartels.
It actually is, for a systems failure as large as the 2008 collapse, there is very rarely any one single cause.
Which is not to say that it had anything to do with OPEC or high oil prices either. If anything high oil prices should have prevented or slowed the bubble from growing.
The deregulation may have increased the scale of the problems when the bubble burst, but it wasn't the root cause of the bubble. The bubble was global, so it couldn't have been deregulation in the US that caused it.
The root cause of the bubble was mostly the unprecedented stretch of low interest rates that was also responsible for the dot-com bubble. One bubble burst, but the source of the loose money remains, so it just inflates a new bubble somewhere else. You simultaneously had the US and European central banks running a loose monetary policy while there was a giant savings glut in Asia.
Tallshortman
Member
lol people were up to their eyeballs long before oil, which had long been at high levels. It did not cause people to "choose between going to work or paying the mortgage", that was never a phenomenon driving defaults.
I'm not sure what conspiracy website you got this from.
T
thepotatoman
Unconfirmed Member
Hmm. That's odd.
I'd like to see the research because that goes against basic economic common sense.
That's not to say things don't go against basic economic common sense all the time, but always nice to get confirmation when they do.
I think you're remembering the recession incorrectly. Oil wasn't the primary reason that people defaulted.
PanicFreak
Member
Cartels getting busted up is a good thing
If you are addressing everybody how can you speak for the rest of the world?