reply to post by Andrew E. Wiggin
Another liberal that doesn't understand how the economy works.
The "psychology" Bush is speaking of is the speculation that has run up prices. Lifting both bans and drilling for oil TODAY will drop prices
TOMORROW the same way that speculation has increased prices. Speculators have bid up prices because the world demand is growing every day and we have
LESS supply today than we did yesterday. So, the speculators do their job: they bet that the price will increase. They BUY CONTRACTS TODAY because
they BET THEY WILL INCREASE TOMORROW because of the supply shortage. If we drill today and supply is increased, they will SELL the high price
contracts because they will bet that the price will decrease.
This is how the futures market works. You buy contracts weeks or months in advance so when you're a business like an airline, you already have the
jet fuel bought and paid for. This is how Southwest Airlines is turning a profit - they own $100/barrel contracts, so they were buying jet fuel at
$100/barrel prices instead of $145/barrel prices like the other guys.
Again, you clearly don't understand the economy. You're incredibly ignorant, yet you still whine. Drilling today will cut the price
tomorrow....and the day after that, and the day after that and the day after that. Bush lifts the moratorium, oil plummets the most in one week in
history - over $16/barrel. You don't have to produce A SINGLE DROP OF OIL for prices to fall $70/barrel. If we start drilling like crazy and get
off OPEC's oil, oil prices will get cut in half in mere weeks because the speculators will bid the price down in the futures market as they KNOW more
supply is coming. They know our future is secure, so the FUTURES MARKET will reflect lower prices.
Get educated please. "So we feel better about it"? Did you seriously just say that? I'm honestly embarrassed for you, sir
[edit on 19-7-2008 by ChocoTaco369]