Seriously Last week the word was people were saving finally which actually maybe bad for the economy Now the report this week says people spent more in June It seems like this all the time. Another example, the price of oil dropped $4 last Wed on news of bearish supply numbers. It went up $3 the very next day on economic news. This seems to be happening all the time.
Well we do know that oil markets always make sense Oil settles near $72 despite robust supplies The point about the refiners is really disturbing because this is where you see oil demand and gasoline demand is really off historically. here's another chart on historical refining usage from the government's site about utilization
How many times do I have to explain to you that you can't isolate one variable and explain oil prices? Currency levels, expectations of FUTURE supply, expectations of FUTURE demand, inventories, economic forecasts, geopolitical tension, and a thousand different other different variables all contribute to the price of oil. You simply can not isolate one variable and expect that to always predict price movements. It's a very complex, dynamic situation.
The only dynamic keeping the prices at their current level is the expectation of a speedy recovery from the recession from what i've been seeing. edit: and the dollar
Yes, I'd say the weakness of the dollar, and expectations of future weakness in the dollar, has led to the increase in oil prices in recent months. But this ultimately goes back to demand, as there will be more foreign demand for the dollar-denominated commodities when their price is lower (by virtue of a weaker dollar). A weak dollar is the result of a mammoth budget deficit (and expectations of inflation). Also pressuring prices upward is the government's punitive actions towards the oil industry (taking away tax incentives, restricting drilling, etc). Just remember to thank the Democrats for high oil prices when they ultimately happen.
Similar to those 1000 page bills that get passed in congress at 3am? Anything complicated is always subjected to abuse.
Moon, it's quite fascinating that have so quickly forgotten about the public shaming that I gave you on the question of whether Obama was a former citizen of Kenya. I don't recall receiving an apology from you on that point. You were quite obviously wrong, and I was quite obviously right. Once again, you proved your inability to battle wits with a smart, intellectual, and stunning human being. But hey, in your defense, I'm sure you often win intellectual battles with your cat. Especially on what time works best for a milking. Go milk your cat, moon.
Im not sure what illicit products you are on today to come up with that response, but if you insist, its those who think the fools up on capital hill are doing a terrific job is what im concerned about.
The first report is looking at the savings rate on a quarterly basis, which went up. The 2nd report is look at the savings rate on a monthly basis from May to June. The savings rate is higher for the 2nd quarter than the 1st. June savings rate is lower than May savings rat, which was at a high of 6.2% The savings rate is higher for the quarterly but on a month to month basis, June spending increased.
01/09 4.6 02/09 3.6 03/09 3.7 1st Quarter 4.0 04/09 4.7 05/09 6.2 06/09 4.6 2nd Quarter 5.2 2nd Quarter 5.2 savings rate is higher than 1st quarter 4.0 savings rate. June 4.6 savings rate is lower than May 6.2 savings rate.
This might have something to do with the rising price of oil. It's not something you hear about with, say, natural gas. Warning: Oil supplies are running out fast Catastrophic shortfalls threaten economic recovery, says world's top energy economist The world is heading for a catastrophic energy crunch that could cripple a global economic recovery because most of the major oil fields in the world have passed their peak production, a leading energy economist has warned. http://www.independent.co.uk/news/science/warning-oil-supplies-are-running-out-fast-1766585.html
not being sarcastic, I really appreciate you breaking down the reports. I guess my concern is how much wisdom is their in the stock market going up and down on reports that come out a week from each other. Does the saving rate going down 1.5% in a month constitute a rally? I don't know maybe, but I wouldn't think so.
I wouldn't base stock purchases on any economic indicators. The best advice I can give you is follow the money. I see the money going to India, China and oil.
Another thing, It's just a statistic. I wouldn't get upset that they don't mean anything. Take it in stride.
Another simliar story. Seems like I hear conflicting reports on housing sales/prices every other week. http://news.yahoo.com/s/nm/20090805/bs_nm/us_usa_housing_deutschebank Note the extreme localization.
