$10/gallon by 2010...
That's what is being predicted today.
Oil Surges Above $140 to Record as Libya Warns of Output Cut Bloomberg, June 26. 2008
The article says that it could be $170 by July 4th!
Originally, the prediction was that oil would reach $100/BBL by 2009. [ummm, i think we're ahead of schedule.]
I put gas in the tank today at 10:30 this morning when I saw it was $4.27/gallon. Two days ago it was $4.39. I figured that it was bound to go up by 5:00 pm so I better stop. It was $54.35 to fill it. Better than last week's $67, but what's coming next? I've drastically cut back on my driving; buy only things on sale at the grocery; visit both farmer's markets in the area; have not bought anything that I don't really need; and have only eaten out twice in the last month for friend's birthdays.
I realize that a big part of the problem is the FX35, but I chose it because I needed something bigger for work -
before I decided to retire - and it's a lease that is not up until January. The only way I can get out of the lease is to do another one with Infiniti. That isn't going to work. I don't want an expensive, gas hungry vehicle. Even before all the gas price raising, I had decided I was going to get a smaller city car. I don't need big any more.
The bigger picture of all of this was the effect it had on the markets:
MARKET SNAPSHOT: U.S. Stocks Plunge; Worst June For Dow Since Great Depression, -348.41 or 3% down to be exact today CNNMoney.com
One of the analysts recommended selling GM stock today. I have had GM forever. The 52-week high was $43.20. It closed today at $11.43! There was a time when the thinking was "As goes GM, so goes the country." If that's still true, we are in deep doo-doo. Really deep...
The smaller picture is how all of this is hitting the small investors like me. I took early retirement over a year ago. Though I am doing consultant work, it is not a steady job. As a matter of fact, being an educational consultant, there really is no work for the next three months. [Really four, since no one really wants consultants the first month of a new school year.] I have a fixed income with my pension checks, but the cost of everything is spiraling out of control because of the oil problem. I have already pulled money out of the money market and savings accounts twice this month just to pay regular bills!
I can't imagine someone who is on Social Security. I have two teacher pension funds I draw on and I know they are much better than SS. I remember my aunt getting her SS check and struggling to make ends meet. She also got a check for $55/month from my uncle's veterans fund.
$55! That was what she considered her
mad money each month. And now that's what a tank of gas costs!
what is wrong with this picture?
and I'm sitting here right now listening to
Hardball with Chris Matthews who just asked his panel how [Tsar] Bush can be so out of touch with the problems he's caused with the economy. "
Where's the oil Bush promised would come with Iraq?" Yes, he actually asked that question.
again, what is wrong with this picture?