I just read this on MSNBC and it just reminds me of how totaly screwed we seem to be right now.
Americans are driving less with the high gas prices. Last year was the first year that mileage was actually down from the previous year, and the trend continued through the first quarter of 2008 with gasoline sales actually dropping 3% (that's by the gallon, not dollar value, it's WAAAAAAAAAY up in dollar value).
So here's the rub. That means every state, most of which are already in the red, is seeing 3% less in tax revenue, further hurting their financial situation.
If people actually stop driving and that drop becomes double digits it could be disastrous to the individual states.
I'll tell you, I'm a hard core Republican, but once in awhile I have Democratic style thoughts. Right now I'm really wondering if the government should get involved and regulate the oil industry in the US.
When something is as vital to the entire country as gasoline is, and it's run by companies that continue to make record profits while average Americans suffer, it seems like THAT'S a situation government should step in on and help.
I believe in the free market, but gas affects every single aspect of our financial lives.
That's my two cents! Do I get any change back from that?
my 2 cents is that the government won't / can't step in and regulate because the country / world is actually run by a handfull of very wealthy individuals (oil tycoons) -- not the big bad americans as everyone is programed to believe...
keep the change...
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You should fear anything that can bleed for seven days without dying... (as told to Mr. DS on 3-12-10)
You could still cap what the oil companies can charge for their gas though, let them take the extra out of their profits.
I hate to use a communist country as an example, but China caps the price of a gallon at $2.99 a gallon (adjusted for US dollars). With their new found wealth they're buying up SUV's at the rate we were a few years ago because they never have to worry about gas becoming prohibitively expensive.
Our food prices go up because of gas, our hard and soft goods go up in price because of gas, everything we do is affected by the price of a gallon of Deisel. Something needs to be done before our entire economy collapses.
I'm not normally a "the sky is falling" kind of guy. I think the system works well in the long haul. But for the first time in my life I'm honestly alarmed. I thought we were never going to have to worry about a repeat of the great depression, but lately I'm starting to think we are going to have front row seats to a very ugly period in America's history.
Heck, I'd be happy if they just regulated deisel. I'm more worried about the effect the increased cost of Deisel is having on getting food and products around the country than I am over what it costs me to drive someplace. I can adapt, move closer to work, walk more, etc. But the truckers need to be able to move products without going broke.
i know... i can't believe the profits the oil companies are making... and still i wonder if those profits are actually downplayed for our sakes what i mean, is i'd bet they're a lot more than reported...
i can relate to being alarmed... the thought of food lines makes my chest tighten...
i'd rather eat than drive somewhere...
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You should fear anything that can bleed for seven days without dying... (as told to Mr. DS on 3-12-10)
Yeah, that's a good point Disco. I'm sure they're not revealing the full amount of profits.
I don't know how they can quarter after quarter have record profits and then claim gas prices aren't their fault.
I know they're not the reason crude is trading so high, but they could slash their profits in half and help their customers out tremendously.
The congress tried to pass something yesterday called a windfall tax, trying to tax the oil companies for anything over a certain profit. I wasn't in favor of that plan. In the end they would just recoup their losses by charging still more for gas.
i know... i can't believe the profits the oil companies are making... and still i wonder if those profits are actually downplayed for our sakes what i mean, is i'd bet they're a lot more than reported...
Most oil companies are public companies and must file a 10Q with the SEC every quarter (the annual report is called a 10K). The profits you are seeing are real and are not downplayed.
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Stop trying to be what you see. Be what you ought to be.
Revenue - Expenses = Net Income Then there are some above the line deductions (interest expense, taxes, etc). That results in Net Profit or Loss.
So, that is after all the expenses have been paid. What they choose to do with their profit (pay dividends, buy new equipment, stash it in the bank) is up to them and it is an afterthought. Depending on what they do only really affects the next quarter's numbers. Example: Buy new equipment. Fixed assets balance goes up, cash balance comes down.
It may be boring, but go read a 10K. That will tell you a lot. Just remember that larger companies report those schedules in thousands. So, if you see something for $1,000 on the schedule, it actually means $1,000,000.
Sorry for the short, quick accounting lesson. You may now be bored.
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Stop trying to be what you see. Be what you ought to be.
I'll tell you, I'm a hard core Republican, but once in awhile I have Democratic style thoughts.
Yay!! There's hope for you yet!!
Actually though I do agree very much with you about a very dark period of history heading our way. I was telling my dad the other day that what we're experiencing right now is only the tip of the iceberg. It wouldn't suprise me if we headed into a depression. I mean look at the housing market, gas and food prices, utility prices, the credit card mess, high unemployment rates throughout the country, and stagnant wages. Something's gotta give! I'm afraid we're in worse shape than anyone cares to admit.
When Carter was in office we had double digit unemployment. I think that's coming back real soon.
And you're right, the housing market is a mess and what's gonna turn it around? People are losing their jobs, they can't afford to drive anywhere, food costs are skyrocketing. I don't see a big market for homes in the next five years.
I think here in MI it's going to take longer than 5 years for the housing market to turn around. We have been way above the national unemployment rate for at least the last 3 or 4 years. Many people right here in Saginaw have just walked away from their homes.....didn't try to sell them, just walked away and let the banks take them back. The last report I heard for my town is there are over 800 homes for sale here but no one is buying. I've also read that many banks now want to see credit scores in the very high 700's before they'll even consider a home loan.
Throw in the mess a lot of people have with their credit lines, and they can't/won't qualify for a home mortgage. It's going to take a long time for things to turn around in the housing market.
Yay!! There's hope for you yet!! 
