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Wonder if the Government will bail out Oil Investors when the Petroleum Bubble bursts?

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ThomWV Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:01 AM
Original message
Wonder if the Government will bail out Oil Investors when the Petroleum Bubble bursts?
The speculative pricing of oil, accounting for probably half of its current market cost, is going to be the next bubble that bursts. When it does Exxon's (and other's) stock is going to plummet. That should prove interesting. The rest of the stock market will follow and then you'll see some real heartache.
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Skink Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:08 AM
Response to Original message
1. That will mean the dollar will be worthless and that won't happen.
Edited on Sat Apr-12-08 10:11 AM by Skink
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ThomWV Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:09 AM
Response to Reply #1
2. Not worthless, just worth a lot less.
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MikeDuffy Donating Member (309 posts) Send PM | Profile | Ignore Sat Apr-12-08 10:13 AM
Response to Original message
3. And if a permanent Peak Oil tight oil supply situation has been reached?
Maybe it is the Consumption Bubble that has burst instead...
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ThomWV Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:28 AM
Response to Reply #3
10. Wishful thinking on your part Mike.
A lot of people want to believe we are at or near "peak oil". We aren't but even if we were it would be meaningless. Immagine this, sometime around your 35th or 40th birthday you're walking down the road and someone taps you on the shoulder and accurately says, 'you have lived exactly half of your life as of this moment'. What difference would it make?
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MikeDuffy Donating Member (309 posts) Send PM | Profile | Ignore Sat Apr-12-08 10:35 AM
Response to Reply #10
11. Does this chart seem to indicate "tight oil supply" to you?


It makes a huge difference to subsequent generations don't you think? (Assuming they are not all killed off by WWIII).
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ThomWV Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:38 AM
Response to Reply #11
12. Mike, your chart shows oil supply going up - a mighty good sign, I'd say
But hardly supportive of your argument.
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MikeDuffy Donating Member (309 posts) Send PM | Profile | Ignore Sat Apr-12-08 10:44 AM
Response to Reply #12
13. Everyone who thinks that chart shows the world is "awash with oil"
please raise your hands.
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Prefer Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:13 AM
Response to Original message
4. The world is awash in Oil
the "crisis" is the big lie, it was in 73, 77 etc. etc.

Remember when they made the Tercel back in 77 because of the gas crunch? And what happened after that? Where did the crisis go?
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Zynx Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:17 AM
Response to Reply #4
6. We aren't awash in oil, but prices are higher than they should be given inventories.
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Zynx Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:16 AM
Response to Original message
5. The stock market didn't exactly plummet when oil was in the toilet during the 1990s.
The rest of the market might do quite well.
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ThomWV Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:24 AM
Response to Reply #5
7. True that, but immagine the shock of seeing Exxon have a losing quarter.
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Zynx Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:26 AM
Response to Reply #7
8. I think it might cause a couple days of difficulty, but long term it is a huge positive.
Most of the companies publicly traded suffer difficulties from higher prices of oil. Far more stocks would increase on a plunge in oil prices than decrease.
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Pavulon Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:28 AM
Response to Original message
9. I cant wait..
eventually it will correct. Nations will fall. Saudi and Venezuela will basically get a margin call. Will we bail them out their economy collapses.
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L. Coyote Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:49 AM
Response to Original message
14. They already have bailed out big oil, or should I say "lubricate" ??
Giving away the oil reserves in the Gulf wasn't exactly a TAX!

Perhaps it is time to take over BIG OIL instead of IRAQ OIL for the sake of national security!
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Zynx Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-12-08 10:57 AM
Response to Reply #14
15. Regulating the crap out of them is preferable to nationalizing them.
To nationalize them right now would cost a crap ton of money due to their market capitalization.
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