Recent sugar prices are an excellent example. Everyone thought Brazil hit it on the head, turning sugar into fuel. Then, reality hit.
I think the opposite. There will be a huge boom in smaller gas-efficient vehicles. There will be a huge boom in building hybrids. In building and converting plugins There will be a huge boom in reuse, reduce, recycle. Some companies have actually talked about mining landfills, to get at some of the valued waste materials. There will be a huge boom in alternative energy. It amazes me that we don't have coast to coast factories, pouring out ultralarge windmills, for offshore and hilltop use. We could employ tens of thousands, and save huge amounts on imported oil. They are already cost competitive, and will soon be cheaper if petrol is that high. Imagine a Manhattan project, that churns out enough windmills to power 50% of the country. We could create a million new jobs, in creating the windmills, exporting them, the parts, the engineers, the service techs, the installation teams, the infrastructure, the modifications to the power grid. If we stop being so thick, we could learn how to siphon the CO2 exhaust from power plants, through giant ponds and greenhouses. Plants grow rapidly in the presence of excess CO2. Fruits, veggies, flowers, and other high value plants could be supported, and get rid of some of the CO2 to boot. The possibilities are endless. Expensive oil is the only way we will EVER get off the OPEC baby bottle.
The trick here will be to put enough people to work to make up for all the folks who will lose their jobs in the industries which will cease to exist in the world of over the top energy costs. We need to get there for sure. The 64 cent question is whether our political elite are honest, intelligent, and strategic enough to challenge the status quo to make this happen. If the current administration is an accurate barometer of the level of saavy out there, signs point to NO. Unfortuantely no one in the this current political season could speak with any coherence on these issues either. Maybe real change only comes through real pain? The developing world is clearly huming an old Jim Morison tune under their breaths, "We want the world, and we want it now!" . They will not tie their hands pursuing environmental policies which limit growth. In contrast, highly developed western economies seem to have elevatated growth limiting regulations into a new art form. Something's got to give, for sure you can't have it both ways. You can't build a "sustainable" future if your kill your economy trying. Or is that what you're left with? Maybe thats the process at work here?
Bernake thinks there is going to be so much stress on the banking system that it will hold down inflation. Thats still a possibilty. If credit spreads widen significantly again oil will be under pressure.
me and my crap walmart bicycle don't care either but i have a stock portfolio that's being negatively impacted by the rise in crude
One of these days, you will realize that it is not a STOCK MARKET, but rather a MARKET of stocks ( oils, drillers, nat-gas, basic material, fertilizer, rails, etc. all of which are in a BULL market ) and that the financial markets do not have the kind of strong correlation that you imply exists with the Economy. It's a significant distinction, and one that you fail to recognize.
Isn't it interesting. No one said, "you're crazy. That can't happen." You all just discussed the situation should that happen. Don't bet against it. These morons in DC would rather have power in a devastated country, than be also rans in a great land. And besides, they don't suffer. You do. So sad.
Exactly, when Nasdaq more triple from late 1998 to early 2000, no politician say it's speculation. In the matter of fact, most of them take credits for the greatest bull run. I guess it's really unamerican to have the stock market go down.
Yeah, I hear ya, bro. Sometimes when the hill is too steep, me and ol' Trek just reverse our position. Then things usually get way better.