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You cant have it both ways! The reason why we see so many layoff's right now is because of the effect on the economy of high prices and low purchases that occured over the last several months, up to and including into this month.
Protest organizers said the company can't pay employees because its creditor, Charlotte, N.C.-based Bank of America, won't let them. Crain's Chicago Business reported that Republic Windows' monthly sales had fallen to $2.9 million from $4 million during the past month. In a memo to the union, obtained by the business journal, Republic CEO Rich Gillman said the company had "no choice but to shut our doors."
Bank of America received $25 billion from the government's financial bailout package.
"Across cultures, religions, union and nonunion, we all say this bailout was a shame," said Richard Berg, president of Teamsters Local 743. "If this bailout should go to anything, it should go to the workers of this country."
Outside the plant, protesters wore stickers and carried signs that said, "You got bailed out, we got sold out."
Originally posted by RFBurns
So right now, I mean RIGHT NOW, is the time to SPEND!! Start traveling, start bying those gifts, start stocking up, start saving reserves of fuel. Help re-start the economy by taking advantage of the lower prices.
Where do you live?? there are just as many cars on the road as when gas was 4+ a gallon, I understand the Law of supply and demand but that does not seem to be taking hold here.
WASHINGTON, Aug 13 (Reuters) - Americans drove 12.2 billion miles less in June from a year ago as high gasoline prices cut the number of highway miles traveled during the month by 4.7 percent, the U.S. Transportation Department said Wednesday.
It was the eight month in a row that driving declined, as Americans have changed their travel habits, switched to more fuel-efficient cars and used public transportation.
Since last November, U.S. motorists have driven 53.2 billion fewer miles than they did over the same period a year earlier, topping the 1970s total drop in U.S. miles traveled of 49.3 billion miles that was caused by several recessions and spikes in gasoline prices during the decade.
The decline in miles traveled since last November has occurred the most in rural areas, where travel has fallen by 4 percent, compared to the 1.2 percent drop in urban miles traveled, the department detailed.
High fuel costs have the biggest effect on individuals in rural areas, who normally drive more and spend a larger share of their income on gasoline.
Gasoline prices should not be where they are right now, especially when you factor in the devaluation of the dollar due to the increase in the money supply via "Bailout Fever".
Oil Is Cheap. Why Is Gas, Which Is Made From Oil, Even Cheaper?
By Catherine Rampell
Crude oil futures recently fell to about $50 a barrel, the cheapest they have been since May 2005. How does this relate to gasoline prices?
There is a relationship between crude oil prices and gasoline prices, since oil is used to make gasoline. But there is not a simple, linear, one-to-one relationship. In the futures markets, a gallon of gasoline has been, on average over the last six years, 22 cents more expensive than a gallon of crude, according to John C. Felmy, chief economist for API, an oil and gas trade association. (A barrel of oil contains 42 gallons, by the way.) That 22-cent difference comes primarily from the costs of refining oil into gasoline.
Right now, though, the decline in gas prices is outpacing that in oil prices on the futures markets. In fact, a gallon of gas is currently cheaper than a gallon of oil on the futures markets in the New York Mercantile Exchange. Why is this?
While one product may be used to make the other, they have different supply and demand issues. In much of the recent past, oil prices drove gas prices. Fears about a supply shortfall, plus strong demand for petroleum products like diesel, pushed up the cost of oil, which meant companies that refine oil into gasoline had to pay more for raw materials. At the same time, though, demand for gas was slowing, which meant refiners were unable to pass on all of their costs. The run-up in gas prices therefore lagged slightly behind the run-up in oil. The price of oil futures peaked on July 3, and the price of gasoline futures peaked a week later.
Then recession hit. The financial system began to fall apart, and along with it investors sold off commodity futures (like crude oil). Consumers also tightened their belts and stopped buying as much gas, even during summer, the peak driving season.
Demand for gas cratered. Since then, gas prices — both at the pump and in the wholesale futures market — have plummeted.
One must remember, though, that products other than gasoline are made from crude oil. Of every barrel of crude oil, only about 40 percent goes to make gasoline, according to Ben Brockwell, director for data pricing and information services at OPIS, a company that tracks petroleum pricing and news. The rest goes toward production of other products, like diesel fuel. Diesel is used in much of the world for electrical power and industrial generation, although there isn’t a huge market for it in the United States.
Perhaps one reason oil futures prices are above gas futures prices is that diesel is feebly keeping oil afloat. Demand for diesel is falling, but it has not fallen nearly as much as gas. Gas futures prices have fallen 70 percent from their peak; diesel futures have fallen 58 percent. Oil futures have fallen 66 percent.
There is also a perpetual fear that some international incident — whether a conflict or a cartel-imposed quota — might disrupt the oil supply. It’s also easier to store crude oil than it is to store gasoline, which has more vaporization issues, Mr. Brockwell says. This means that if there isn’t much demand for petroleum products now, but you expect there to be a shortage in the future, it may make sense to hold onto (and buy more) crude, but the same wouldn’t be true for gasoline. On a related note, the price of oil several years down the road is much higher than the spot price, which means refiners have a strong incentive to stock up on oil now.
A brief addendum on retail gas prices: You’re probably wondering how all this relates to the prices you see at the pump. On average over the last six years, a gallon of gas on the retail market has been about 99 cents higher than a gallon of oil on the futures market, according to Mr. Felmy. (Those 99 cents come from the costs of refining, distribution, marketing and taxes. For a detailed breakdown, click here.) Unlike wholesale gasoline futures, today retail gas is still more expensive than oil futures, although the price difference is narrower than usual, presumably because of dwindling consumer demand. Right now, the average retail price nationwide is $1.929 a gallon for regular, according to AAA, the automotive group; a gallon of crude on the futures market is trading at $1.193 on the New York Mercantile Exchange.
Gasoline prices should not be where they are right now, especially when you factor in the devaluation of the dollar due to the increase in the money supply via "Bailout Fever".
MOSCOW — Faced with falling oil prices, Russia is preparing to announce that it will work with the Organization of the Petroleum Exporting Countries to coordinate a reduction in output, the minister of energy said Wednesday.
Mr. Shmatko said that by Dec. 17, the date of the next scheduled OPEC meeting, Russia will announce a plan to reduce the country’s oil production, the Interfax news agency reported. The minister offered no details of how this would be done, or how much oil might be taken off the market. Mr. Shmatko said Russia would also seek to persuade other non-OPEC producers to reduce output. A spokeswoman for the ministry declined to elaborate.