Somebody, please explain this to me...

By
Real Estate Agent with Aloha Realty Group

I think we all understood what happend over the weekend with Indymac.

What I dont understand why Bernanke's perspectives on the economy, particularly following the Indymac incident, as described by CNN,  determined the price of oil to drop signficantly. The correlation is obvious to CNN, according to this article, but not to me. Why would a gloomy perspective on the economy would determine the price of oil to go down??????

I hope the price of gas will also go down...

 

Posted by

Mihaela Stoops, REALTOR Broker

Aloha Realty GroupHonolua Bay

180 Dickenson St #217

Lahaina, Hi 96761 

www.ForSaleinLahaina.com                                      www.WestMauiHome.com    

      

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the truck to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Comments 5 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the printer to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
469,899
Bill C. Merrell
Ph.D. - Merrell Institue
Merrell Institute ~ Appraisal Education Network

I DON'T UNDERSTAND EITHER.

BILL

KEEP ON BLOGGING

I THINK BOTH ENTITY AND EVENTS ARE SEPARATE- YMHO

July 15, 2008 11:11 PM
Rainer
333,747
Tom Davis
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today !

Hmmm maybe someone else might know..sorry.

Thanks,

Tom Davis

World Class Delaware Realtor

July 15, 2008 11:42 PM
Rainmaker
226,009
Mike Wong
Realtor, GRI
Keller Williams Realty Southwest

Basically Bernake believes the increasing inflation rate combined with the stagnant economy and mortgage/credit crisis is already straining Americans' wallets. So we will start to cut back and compromise on our spending and driving which will reduce the demand for oil.

At least that is his theory, I have yet to see how Bernake gets anything right besides explaining the current situation we are in. Ask him how to resolve something and he looks like a deer in the headlights.

July 15, 2008 11:54 PM
Rainmaker
991,880
Charles McDonald
Charlottesville Real Estate Solutions

It is supply and demand. If demand goes down supply goes up (with more supply, you get lower prices)... I think that is it! lol :-)

Your Friend in Charlottesville!

July 16, 2008 06:32 AM
Anonymous #5
Anonymous
Brant Holland
I agree with Charles. News came out that gas reserves are up which means that Americans have cut back on driving. I also think the Airlines reducing flights has had a huge impact. Gas hit a price that the consumer will not support and they cut back consumption. Market forces can get out of hand but then they self correct. I hope the government will keep out of this as much as possible and let the problem fix itself.
July 18, 2008 01:43 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the eye to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
41,553

Mihaela Stoops

REALTOR - Broker, Your Maui Real Estate Professional
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: