It seems that the oil companies have taken a huge amount of profits: perhaps at the demise of our economy.
I know our company has been hurt by the gas prices much more than loan issues.
The mortgage crisis was simply a vulnerability. Most of the people involved didn’t necessarily ":have to": fail. The Adjustable Rate Mortgages they held would have been sustainable if wages had continued to climb as they did during the economic boom of the 90’s. But that didn’t happen, thanks to the wars and such.
But if the mortgage crisis was the gasoline, then the blowtorch was…well, gasoline. This was a two-pronged attack:
First, OPEC decided that they should be making fatter profits from the fat cat west, so they started tightening supplies to drive up prices so that they could create a new equilibrium level in the US and sustain it. ":Americans are rich,": they reasoned. ":Why shouldn’t they be paying us through the nose for oil, like Europe does?":
This created higher gasoline prices in the US. Instead of responding, the oil-linked administration celebrated, as their cronies and corporate sponsors were getting rich on the differential. Remember that at the start of the worst economic crash in our history, during the worst natural disaster (Katrina), Exxon Mobil showed quarter after quarter of the highest profits in the history of our economy, all while bellyaching that they were being accused of price gouging during war time and rallying against a windfall tax to put some of that ill-gotten profit to work for the people.
The American entrepreneur Donald Trump told an interesting story during this period. He’s building a number of hotels in Dubai, in the United Arab Emirates, and his oil sheik friends there were laughing themselves silly. ":We were sure George Bush would cry bloody murder around $3 a gallon. We’re at $4.50, and he hasn’t said a word!":
Those two factors drove up oil prices. And that impacted every aspect of American life, from producing products, to distributing them, to driving the kids to soccer. Everyone paid higher prices at every level. That meant that spending had to drop somewhere, so discretionary income dried up. This, in turn, pinched producers, who cut back on hiring and froze wages. And, guess what…those employees couldn’t pay their ARMS when they went up as planned.
Oil, I think, was the major reason for the economic crisis. The mortgage issue was just a symptom. After all, would we even know about the Bernie Madoffs at this point if the economy were still growing and stock prices still rising?
Actually that is false. Loans are the main reason why are economy is hurt. If people cannot pay back loans then that results in the bank failing, and depositors not having ANY MONEY that was in that bank.
Oil companies don’t exactly have enough oil for them to sell since there is such a high demand for it. If there was more oil then the prices would drop, when people don’t buy much gas as you see gas prices go down, but when lots of people buy gas then that results in gas rising up.
Well gas prices went up not because the oil companies wanted to charge more, but they had to charge more. The United States did not want to drill for oil because they didn’t want to ruin any part of the environment. So we have to have it imported, and since we’re kind of at war with the places we get it from, the prices aren’t that great.
so yeah that is part of the reason, but not the whole reason.
I think the recession has more to do with housing and things like that, but I’m not completely sure.
Yes, the oil companies are part of the blame but not all of it. It is a wide array of evil greed that back fired on the greedy.
When you have a world full of ":as long as I get mine, I don’t worry about anyone else": then this will happen. Normally, while evil robbed people blind, they give a little to charity to cover it up and not look so bad. You will find that the very rich give the least. God says they have hoarded it for the latter days to no avail.
I would hate to be in their shoes. I prefer to have Peace with God, Peace with others and Peace with myself.
No – both were symptoms of the Federal Reserve inflating the credit markets, fueling asset bubbles that eventually popped.