Obama tells questioner who can't afford to fill up gas tank, to buy a new car

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    Apr 07, 2011 3:31 PM GMT
    I'm not entirely sure how I feel about this. This is issue is starting to get a lot more play on the political websites I follow that has not yet been widely covered.

    On one hand, I think Obama is right - there isn't anything his Administration or Congress can do in the very short term, but on the other hand, his Administration isn't doing nearly enough in terms of ensuring energy prices are affordable in the mid to long term. I also believe that higher energy prices will spur a switch to better more efficient alternatives. That said, some current policy decisions could also have impacts on long term prices (especially refinery/last mile gasoline) given that markets are forward looking.

    He has spent billions on clean energy and trying to pick favorites but it's quite probable that those investments will have little impact (government has a rather poor record of picking favorites) and almost certainly the breakthrough won't come from GE, a key beneficiary.

    He has also not done enough to spur the transition to natural gas which would at least provide breathing room - which could be done in streamlined regulations that are currently highly beneficial to the refining industry. He could also start approving additional drilling.

    Politically however, I expect that gas prices and jobs/income growth will be the biggest issues in 2012 but a lot can happen. Looking like the "Marie Antoinette" act is just an unforced error on his part especially since he earlier advocated higher prices previously to encourage a switch over to alternatives.

    http://abclocal.go.com/wpvi/story?section=news/politics&id=8056167

    Obama needled one questioner who asked about gas prices, now averaging close to $3.70 a gallon nationwide, and suggested that the gentleman consider getting rid of his gas-guzzling vehicle.

    "If you're complaining about the price of gas and you're only getting 8 miles a gallon, you know," Obama said laughingly. "You might want to think about a trade-in."


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    Apr 07, 2011 3:45 PM GMT
    The man has 10 kids! His choice!


    What happened to taking responsibility for your own choices? and dealing with the consequences of his penis.



    Isn't that the REPUBLICAN Way of thinking?


    Actually, thanks for posting this....this actually makes Obama look good.





  • rnch

    Posts: 11524

    Apr 07, 2011 4:03 PM GMT
    LeanathleticDC saidThe man has 10 kids! His choice!


    What happened to taking responsibility for your own choices? and dealing with the consequences of his penis.



    Isn't that the REPUBLICAN Way of thinking?


    Actually, thanks for posting this....this actually makes Obama look good.









    agree!!
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    Apr 07, 2011 7:53 PM GMT
    indeed. public transit. is an alternative too.
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    Apr 07, 2011 8:09 PM GMT


    Didn't he take advantage of the CASH FOR CLUNKERS?




    Again, Thanks riddler.....for pointing out this good news about President Obama.



    Republicans keep telling us to accept personal responsibility.....and President Obama pointed it out to this guy.



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    Apr 08, 2011 3:05 AM GMT
    Try selling this load of rubbish when the oil speculators drive oil to $200/BBL this summer, and prices at the pump climb to $5.49/gal for regular unleaded and $6.39/gal for diesel...

    ...and the cost of food and other must-consumables jumps another 30%.

    Gas spiked another $0.22 overnight near NYC.

    Hyperinflation? Not yet. But combine that with the Chinese dumping the dollar, and realignment of foreign oil markets to trade on the Euro and the Yuan Renminbi... and things will start to get very uncomfortable even for the lower tier of the upper middle class.

    And when bus fares go up from $2 to $5... then let's see how public opinion deals with smarmy remarks about buying new cars from the leadership.

    Free markets are nice, but some things that are vital to the infrastructure like fuel and food should not be the playthings of the idle rich.
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    Apr 08, 2011 3:11 AM GMT
    alphatrigger saidTry selling this load of rubbish when the oil speculators drive oil to $200/BBL this summer, and prices at the pump climb to $5.49/gal for regular unleaded and $6.39/gal for diesel...

    ...and the cost of food and other must-consumables jumps another 30%.

    Gas spiked another $0.22 overnight near NYC.

    Hyperinflation? Not yet. But combine that with the Chinese dumping the dollar, and realignment of foreign oil markets to trade on the Euro and the Yuan Renminbi... and things will start to get very uncomfortable even for the lower tier of the upper middle class.

    And when bus fares go up from $2 to $5... then let's see how public opinion deals with smarmy remarks about buying new cars from the leadership.

    Free markets are nice, but some things that are vital to the infrastructure like fuel and food should not be the playthings of the idle rich.


    The problem isn't with markets and speculators. The problem is with inadequate supply (in large part refineries but also actual fields) and alternatives and also rising demand.
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    Apr 08, 2011 3:26 AM GMT
    I believe the supply is there - I remember during the 2008 oil price surge (to $150/BBL) reading about fleets of oil tankers sitting in the Gulf but couldn't unload (the oil was being held off the market by hedge funds looking to create and drive up a price bubble whose collapse seemed immaculately timed with the onset of bank failures and the TARP).
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    Apr 08, 2011 3:30 AM GMT
    riddler78 said
    alphatrigger saidTry selling this load of rubbish when the oil speculators drive oil to $200/BBL this summer, and prices at the pump climb to $5.49/gal for regular unleaded and $6.39/gal for diesel...

    ...and the cost of food and other must-consumables jumps another 30%.

    Gas spiked another $0.22 overnight near NYC.

    Hyperinflation? Not yet. But combine that with the Chinese dumping the dollar, and realignment of foreign oil markets to trade on the Euro and the Yuan Renminbi... and things will start to get very uncomfortable even for the lower tier of the upper middle class.

    And when bus fares go up from $2 to $5... then let's see how public opinion deals with smarmy remarks about buying new cars from the leadership.

    Free markets are nice, but some things that are vital to the infrastructure like fuel and food should not be the playthings of the idle rich.


    The problem isn't with markets and speculators. The problem is with inadequate supply (in large part refineries but also actual fields) and alternatives and also rising demand.
    Oh come off it.. the 'speculators' went nuts over the possibility of Libyan oil not being available to the market..
    Opec immediately absorbed the shortfall in production.. but the 'speculators' still drove prices up..

    The 'supply' never changed. only the 'speculator's' greed in using a conflict in the area as a 'worry' to drive prices up, thereby increasing their shares.
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    Apr 08, 2011 3:41 AM GMT
    TropicalMark saidOh come off it.. the 'speculators' went nuts over the possibility of Libyan oil not being available to the market..
    Opec immediately absorbed the shortfall in production.. but the 'speculators' still drove prices up..

    The 'supply' never changed. only the 'speculator's' greed in using a conflict in the area as a 'worry' to drive prices up, thereby increasing their shares.


    The markets run based on future expectations - that's why if the Obama Administration shifted policies (in either direction), that would also change market prices if it affected any of supply, demand or alternatives.
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    Apr 08, 2011 3:41 AM GMT
    Again, I'm usually not one to desire governmental intervention in the market, but oil basically underlies every other necessary thing for the US economy, especially the transit of food and workers.

    While some reserve trading is needed (by home heating companies, transportation companies and other entities that take physical possession of the oil as a hedge against unexpected shortages)... much of the activity we are seeing never takes actual possession of the oil.

    Rampant speculation of oil in 2008 exacted a heavy personal cost to millions of Americans in terms of food costs and transportation costs; in earlier times such shortages would have been known under wartime rationing.

    But excessive speculation with a resource as strategically valuable as oil could threaten our economic stability - I'd go as far to call it a threat to national security.
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    Apr 08, 2011 3:48 AM GMT
    riddler78 said
    TropicalMark saidOh come off it.. the 'speculators' went nuts over the possibility of Libyan oil not being available to the market..
    Opec immediately absorbed the shortfall in production.. but the 'speculators' still drove prices up..

    The 'supply' never changed. only the 'speculator's' greed in using a conflict in the area as a 'worry' to drive prices up, thereby increasing their shares.


    The markets run based on future expectations - that's why if the Obama Administration shifted policies (in either direction), that would also change market prices if it affected any of supply, demand or alternatives.
    LMAO... Using your own 'statement', when the world economy plunged the markets should have plunged too based on "future expectations"..??? huh huh? but, they didnt did they?
    Predicting the 'future' is market manipulation in it purest form..
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    Apr 08, 2011 3:48 AM GMT
    alphatrigger said
    But excessive speculation with a resource as strategically valuable as oil could threaten our economic stability - I'd go as far to call it a threat to national security.
    And I agree with you there.
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    Apr 08, 2011 3:52 AM GMT
    alphatrigger saidAgain, I'm usually not one to desire governmental intervention in the market, but oil basically underlies every other necessary thing for the US economy, especially the transit of food and workers.

    Rampant speculation of oil in 2008 exacted a heavy personal cost to millions of Americans in terms of food costs and transportation costs; in earlier times such shortages would have been known under wartime rationing.

    But excessive speculation with a resource as strategically valuable as oil could threaten our economic stability - I'd go as far to call it a threat to national security.


    That's an even better reason not to leave it in the hands of government to price. While recognizing that there may be issues with short term speculation, markets are also self correcting - since there are always speculators happy to get on the other side of another speculator's trade - some speculate it will go up, others down, but it ultimately balances out especially for commodities.

    It's a slippery slope though in general - after all high prices also create incentives for more production over time (and price fixing didn't help much helping cause the Great Depression, not to mention the oil crisis under Carter). But just a thought experiment, if you make the argument that the resource is strategic, then why not food, water, shelter? But markets have helped at least in the case of food and shelter drive down costs dramatically (and quite arguably had governments played an even greater part, it would have resulted in even higher prices because of reduced incentives for exploration). One of the things they can do though is allow for expanded refinery capacity the problem being they're so difficult to build anywhere. There's also the issue of when they'll start allowing more deep water drilling or streamlining regulation that allows for natural gas conversions given how much we have.
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    Apr 08, 2011 3:54 AM GMT
    TropicalMark saidLMAO... Using your own 'statement', when the world economy plunged the markets should have plunged too based on "future expectations"..??? huh huh? but, they didnt did they?
    Predicting the 'future' is market manipulation in it purest form..


    It did drop. Even in Obama's statement he pointed out this was part of the reason. Prices take all factors into account and attempt to effectively predict the future - but this doesn't mean it's manipulation - but it is based on anticipation.
  • musclmed

    Posts: 3284

    Apr 08, 2011 3:56 AM GMT
    LeanathleticDC saidThe man has 10 kids! His choice!


    What happened to taking responsibility for your own choices? and dealing with the consequences of his penis.



    Isn't that the REPUBLICAN Way of thinking?


    Actually, thanks for posting this....this actually makes Obama look good.







    sounds like its more about the "D" looking good instead of the values .

    As far as I know, saying " take responsibility for your penis" wouldn't go so well at any progressive rally.

    Maybe his kids were adopted? who are we to judge.


    So what it seems to me its less about the "values", and more about the poltical power that comes from the so called support for those values.

    To date any private citizen that calls Obama out, right or wrong is excoriated by the left. I wonder how long before its blatantly obvious whats going on.

    I actually think Obama said what about 90% of Americans would say to a guy who complained about a 8mile/gallon car. A brief whiff of leadership.


    As for last years budget and just about everything else, Obama lacks leadership.

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    Apr 08, 2011 4:01 AM GMT
    riddler78 saidOne of the things they can do though is allow for expanded refinery capacity the problem being they're so difficult to build anywhere. There's also the issue of when they'll start allowing more deep water drilling or streamlining regulation that allows for natural gas conversions given how much we have.


    Definitely agree with this: we could stand to drill down (pun intended) the restrictions on drilling and fracking and also investigate the harvesting of methane clathrates from the sea floor.

    The soon we can achieve less dependence on oil from dictatorships - the better off we will be.

    And there will be less need for such see-saw speculation whenever some middle-eastern nation sneezes.
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    Apr 08, 2011 4:11 AM GMT
    musclemed saidI actually think Obama said what about 90% of Americans would say to a guy who complained about a 8mile/gallon car. A brief whiff of leadership


    Most SUVs built after 2003 or so can manage around 14MPG city / 18MPG highway... and V8 sedans are something of a rarity, but are probably in a slightly better range.

    More so with proper maintenance and upkeep of tyre pressures and other such minutiae.

    But a lot of folks aren't really in a position to drop $10K on a used car, much less $25K+ on anything new.

    Of course, in many cases that works out to a $500+/month bill when adding up the cost of comp/collision/liability insurance and financing or leasing.

    Many folks are getting by with older cars that are sub-par for mileage... but when the cost of gas approaches the replacement cost (of a new or recently owned vehicle) that is beyond their budget... it's not good.

    I can empathize: I could afford a nice new car, but I'd rather drive my 2000-era car that gets 26MPG which is paid off and only costs me around $500 a year or so to keep on the road between maintenance and insurance costs. icon_biggrin.gif