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    

      

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Rainmaker
484,718
Bill C. Merrell
Merrell Institute ~ Appraisal Education Network - Bohemia, NY
Ph.D. - Merrell Institue

I DON'T UNDERSTAND EITHER.

BILL

KEEP ON BLOGGING

I THINK BOTH ENTITY AND EVENTS ARE SEPARATE- YMHO

Jul 15, 2008 11:11 PM #1
Rainer
333,759
Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

Hmmm maybe someone else might know..sorry.

Thanks,

Tom Davis

World Class Delaware Realtor

Jul 15, 2008 11:42 PM #2
Rainmaker
242,400
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor, GRI, Project Manager

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.

Jul 15, 2008 11:54 PM #3
Rainmaker
1,007,020
Charles McDonald
Charlottesville Real Estate Solutions - Charlottesville, VA
REALTOR®, Blogger, Principal Broker®, Owner

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!

Jul 16, 2008 06:32 AM #4
Anonymous
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.
Jul 18, 2008 01:43 AM #5
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Rainmaker
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Mihaela Stoops

REALTOR - Broker, Your Maui Real Estate Professional
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