Comments on: It’s Probably More Complicated Than You Think

By: Roy

Roy — Wed, 07 Jan 2009 01:55:56 +0000

In an industry where conservation has been the feared, the swings in crude oil prices have driven a profoundly valuable experiment in charting price elasticity. There was no fundamental public outrage, threats of government intervention, or shifts in consumer behavior until oil bounced around $140 and gasoline at $4. The World’s supply chain has been forever changed with raw material prices and transportation costs now set to optimize the profits of the oil industry. Good business management now equipped with much better data on market behaviors.

By: Karl

Karl — Wed, 07 Jan 2009 01:55:56 +0000

Not sure I see Santo's point when OPEC cuts output unexpectedly by 520,000 bpd today.

By: John

John — Wed, 07 Jan 2009 01:55:56 +0000

or not

By: Robert V

Robert V — Wed, 07 Jan 2009 01:55:56 +0000

Does he realize what $500 trillion is? Together they back about half the country's $12 trillion in mortgages.

By: anonymous

anonymous — Wed, 07 Jan 2009 01:55:56 +0000

He says that Fannie and Freddid have 500 trillion in debt…what is he smoking?

By: Reid

Reid — Wed, 07 Jan 2009 01:55:56 +0000

I think this was a poor link for two reasons. First, as pointed out by others, the logic is seriously flawed. Second, my eyeballs almost exploded after being exposed to the ridiculous gray-on-black design of the site. That might just be a nominee for webpagesthatsuck.com's worst of 2008 contest.

By: bfeld

bfeld — Wed, 07 Jan 2009 01:55:56 +0000

Eh – maybe Santo will show up to defend his logic as well as his particular choice of design.

By: togilvie

togilvie — Wed, 07 Jan 2009 01:55:56 +0000

There's an extremely liquid futures market that thinks Santo may be smoking something as well.

OPEC may have something to gain from having a Republican victory, but there are tons of hedge funds who would sell their mothers for juiced performance. The futures market suggests they don't believe this is a temporary dip until november/january.

By: steve_bergs2127

steve_bergs2127 — Wed, 07 Jan 2009 01:55:56 +0000

I have NO economic background but I do wonder what economic links there are between the outrageous spending in Iraq and the current economic malaise. Someone must have some theories about it.

By: Santo Politi

Santo Politi — Wed, 07 Jan 2009 01:55:56 +0000

I was off the grid and I plan to come back with my comments. 500Trillion was wrong, the right figure is 5 Trillion. The error occured becasue I typed it on my blackberry in my flight to Denver yesterday. I will make the proper connection.