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re: The Last Time The Price Of Oil Crashed Like This?
Posted on 12/22/14 at 3:01 pm to yankeeundercover
Posted on 12/22/14 at 3:01 pm to yankeeundercover
The oil fall along with most goods was due to the economy slowing down when the sub prime bubble burst.
Today the fall is not due to fall in consumption but due to growth in output.
This time the fall is good for the economy.
Today the fall is not due to fall in consumption but due to growth in output.
This time the fall is good for the economy.
Posted on 12/22/14 at 3:02 pm to stout
quote:
And grad schools
Not as much as you'd think, but you'll definitely see some more separation between undergrad and people pursuing a master's degree.
quote:
Attornies are already saturated
While a graduate level degree, they really stand on their own. They will also fall down on their own. If a true crash hits, you're going to see law schools shut down. The expense along with student loan debt is going to kill them.
quote:
Trade schools will increase IMO
100% agree.
This post was edited on 12/22/14 at 3:05 pm
Posted on 12/22/14 at 3:03 pm to mostbesttigerfanever
quote:That was second to last time, brah.
1986
Posted on 12/22/14 at 3:05 pm to baobabtiger
quote:
This time the fall is good for the economy.
Maybe the overall US economy, but not LA or Texas which is all Im really concerned with TBH
Posted on 12/22/14 at 3:06 pm to yankeeundercover
quote:
1986
That was second to last time, brah.
it's never gotten as low as it was in '86 since then
Posted on 12/22/14 at 3:06 pm to baobabtiger
quote:
Today the fall is not due to fall in consumption but due to growth in output.
Not necessarily. There is definitely record outputs, but pretty weak to average demand globally.
One of the huge catalysts of oil demand was stronger demand for oil in asia and elsewhere globally. A lot of other economies are still struggling, coupled with record output.
Posted on 12/22/14 at 3:07 pm to Ole War Skule
quote:
the SPIKE in commodity prices (oil, food etc) is what popped the housing bubble and lead to the recession.
Ummm...lolno. The subrime mess lead to the housing bubble popping. People were literally buying houses with notes that ate up 80% of their monthly salary.
You can thank Clinton for loosening the subprime restraints and banks for learning how to exploit it. They would bundle hundreds of thousands of mortgages they knew were bad but passed the subprime standards Clinton set and sell them on the market for tons of money.
Posted on 12/22/14 at 3:08 pm to stout
quote:"Too Big to Fail" followed the business side of the crash... really good movie.
The subrime mess lead
Posted on 12/22/14 at 3:09 pm to stout
quote:
The subrime mess lead to the housing bubble popping
Right. Meaninf people were leveraged to hilt. When you're leveraged so much, you become much, much more sensitive to commodity prices. Even the slighest uptick is going to wreak havoc.
Posted on 12/22/14 at 3:13 pm to southernelite
quote:
When you're leveraged so much, you become much, much more sensitive to commodity prices. Even the slighest uptick is going to wreak havoc.
Yes but many couldn't afford the homes from day one. Predatory lending was huge during that time and people were dumb and greedy enough to fall for it. They were sold the American Dream so banks, realtors, and mortgage underwriters could all cash in.
Posted on 12/22/14 at 3:19 pm to stout
Well ya, that is why I mentioned it!
Posted on 12/22/14 at 3:20 pm to stout
There are several areas that it's still happening, on a micro scale. The Spring/Woodlands area is about to burst. That market has seen major jumps in the housing prices in the last year or so. It's interesting to watch.
Posted on 12/22/14 at 3:28 pm to MightyYat
quote:
quote:
Louisiana's economy will take a big hit.
It won't be bad at all for us down here.
how so?
oil goes down, big O&G companies aren't making big profits anymore. They don't make big profits, they don't keep expanding. They don't expand, contractors don't have as much work to do since projects are getting cancelled. Other local companies that sell equipment to O&G companies don't have new infrastructure to sell more equipment like valves, pumps, hvac, compressors, motors, seals, pipe, etc.
Posted on 12/22/14 at 3:39 pm to Spirit of Dunson
quote:
The linked site makes it seem as if oil caused the economic crisis in 2008.
The credit default fiasco hadn't quite hit yet and the only thing that could have a significant effect on the O&G field was Bush's removal of the administration's barriers to offshore exploration/drilling.
To put it into perspective, from February - July 2008 the price of oil spiked from a price of $98 to $145. That's a jump of roughly $40 in 5 months. Prior to that it took well over 5 years for the price to go from $50 - $98. Then in July it began free-falling for the next 6 months where it went from $145 to $37. Barring world-wide cataclysm, there is no discernible reason for simple supply/demand to cause such astronomic changes in such miniscule amounts of time, especially when that drop happens during the peak of the summer driving season.
Posted on 12/22/14 at 3:40 pm to stout
There were tons and tons of factors that culminated together. You can't blame it on just one. Just saying it was big banks fault is such a cop out.
Posted on 12/22/14 at 3:45 pm to southernelite
I'm invested heavily in the natural gas production part, hope we don't get kicked in the nuts.
[ Owns rental equipment used by gas companies
[ Owns rental equipment used by gas companies
Posted on 12/22/14 at 3:48 pm to yankeeundercover
quote:The Gulf south will do quite well with natgas under $5.00 - petrochemical industry will benefit for years to come - not so much for the fracking.
The Last Time The Price Of Oil Crashed Like This?
Posted on 12/22/14 at 3:49 pm to MightyYat
quote:
quote:
Louisiana's economy will take a big hit.
It won't be bad at all for us down here.
$30 Billion in new industrial work on the books for LA. Add to that the infrastructure, housing, retail, etc that goes along with that.
The market is looking up.
Posted on 12/22/14 at 3:58 pm to yankeeundercover
we'll be fine.
Russia, iran and venezuela... well not so much.
Russia, iran and venezuela... well not so much.
Posted on 12/22/14 at 4:02 pm to MightyYat
quote:What makes you say that?
It won't be bad at all for us down here.
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