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Hillary vows to break up OPEC

Discussion in 'Sports and News' started by Chi City 81, May 5, 2008.

  1. Now that's some first-class humorlessness right there.
    Jesus H.
     
  2. The Big Ragu

    The Big Ragu Moderator Staff Member

    Well, I don't humor quite as well as you, I guess.

    I'd like to thank Shecky Greene for joining us today.
     
  3. Stoney

    Stoney Well-Known Member

    First, Venezuela certainly is a member of OPEC. And, second, bashing Hillary's word choice here strikes me as pretty damn nitpicky. The term monopoly is commonly used by economists and politicians to describe markets where one supplier has undue ability to dictate prices because of disproportionate market control (even if short of 100%) and barriers that prevent new competitors from entering the market.

    And OPEC sure as hell has a lot of monopolistic control over the price of oil--it controls more than 2/3 of the world's oil reserves and they ain't making any new oil that would allow new countries to join the game. "Oligopoly" might've been a technically more accurate term, but her point is quite valid.
     
  4. You don't humor as well as a flatiron, but never mind.
     
  5. The Big Ragu

    The Big Ragu Moderator Staff Member

    [​IMG]

    A flatiron. Get it? A FLATIRON, people!!! I'm being funny here, dammit!
     
    Last edited by a moderator: Dec 15, 2014
  6. Chi City 81

    Chi City 81 Guest

    Dude, not on my thread.
     
  7. Yawn

    Yawn New Member

    Let's face reality people. Clinton needs to heed the Great "I got my liberal ass kicked" McGovern and get the hell out of this for the sake of any Democrat who dreams of winning this election. She thinks she can punish the oil companies without them passing on the damage to the consumer and yet she thinks she fights for the consumer. She's truly clueless and bitch-slap material for McCain in the general election.
     
  8. Boom_70

    Boom_70 Well-Known Member

    Ragu once again you have demostrated that you undertand the way the futures market used to operate. If you don't understand the concept arbitrage, then there is not sense in having further discussion


    If I may though - questions on stocks - What is a more imprtant short term factor in price of a stock--

    -- Underlying fundementals of the stock ?

    -- Lots of buyers of stock ?

    -
     
  9. The Big Ragu

    The Big Ragu Moderator Staff Member

    Boom, I understand how arbitrage works. You didn't explain how arbitrage can drive up the price of a commodity. The *only* way that can happen is if someone is hoarding the commodity and then trading in it -- without anyone knowing he is hoarding it. Is that what you are suggesting? Because you can account for every last drop of oil in the world's reserves. So that isn't a possibility. And reserves have been steady for as long as the eye can see. If someone was rigging the price that way and profiting off it, there'd be a stockpile of oil sitting somewhere.

    In fact, in a way what you described IS happening. Except it isn't a bunch of investors. It's the Saudi Arabians. Worldwide demand has skyrocketed and it is continuing to drive the price -- Asian demand is still picking up. And oil-producing countries can control the supply. And right now, they are not pumping nearly enough of the stuff. In fact, Saudi Arabia has been scaling back production in the face of rising demand. Which creates higher prices. In effect, the Saudi's are hoarding what they have sitting under their country.

    As for the question, ANYTHING can affect the price of a stock on a short-term basis. A rumor, various types of news related to the company or the economy, etc. Now again, explain how that gibes with your various statements? You started that other thread saying (but not explaining how) a type of derivative that dates back to 2001 or 2002 is responsible for high oil prices. That wouldn't suggest a short-term phenomenon. And either way, if there is irrational exuberance in a stock or in a market, it eventually corrects itself. Always. If the fears being built into the oil market are driving the price too high, it will come down to where it should be as time goes on. Some people think there is a bubble. From everything I read, I actually think the pricing is probably dead on and this is no bubble.

    http://www.usnews.com/blogs/capital-commerce/2008/5/7/can-the-economy-survive-200-a-barrel-oil.html
    http://www.businessweek.com/ap/financialnews/D90G5B2O7.htm

    Murti was the analyst who was predicting $105 a barrel when the price was $55 a few years ago. And right now he sees a weak U.S. dollar making this situation continue to get worse over the next two years.
     
  10. Boom_70

    Boom_70 Well-Known Member

    What does a weak US dollar have to do with price of oil?
     
  11. writing irish

    writing irish Active Member

    This is turning into a mildly bizarre thread. Carry on.
     
  12. markvid

    markvid Guest

    Actually, I think it's pretty educational. I learned a lot of stuff about futures I didn't know.
     
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