United States Heading towards a Depression?

You might want to brush up on how much it would cost to extract that oil.

 

If the Middle East runs out of oil, our economy will be in a depression, as well the world. Our entire economy is based on it, almost entirely. It's quite evident from the recent building in places like the UAE and Dubai that the need for investment in alternative forms of revenue generation is a direct result of the shrinking reserves.

Unless America Drills at Home and Drills Now, there will be a war and world depression the likes of which has never been seen before.

Of course, you'll be ok... Whatever we do, you benefit from - then complain about it.

 

I read a couple articles yesterday as a result of reading mia's post about oil shale. It seems that extracting oil shale may be well more than what could be considered economically viable at this point but politicians are blocking development.
Maybe we should start an online petition to tell the Colorado politicians to get their heads out of their asses so we can finally start weening ourselves off of foreign oil.

http://money.cnn.com/2008/06/06/news/economy/birger_shale.fortune/?postversion=2008060617

 

I did. It used to be too expensive. I see where you are going with this. Fact of the matter is, with oil at the prices it is now, it is actually cost effective to extract oil from shale and sand now.

 

The wonders of the marketplace!

 

America had access to a lot of very cheap oil for a long time and we are no longer the big consumption monster that we once were. Gotta get used to it, or pull a "Mia" and go all Amish and shit.

Banks have massive amounts of derivative exposure. Check it out here (plenty of graphs and cool stuff, if you must skip to page 22): http://www.occ.treas.gov/deriv/deriv.htm

LEH is on the slippery slope to $0, or at least $2 if they are considered too big.

The recession of '08 is back on track (for now).

The EU's Trichet wants to raise rates. I say to him, "go for it shithead I hope the EU eats pavement".

 

It's really a shame you don't have your own blog. You could do vlogs where you take homeless people into the stock exchanges and attack traders.

 

I want to own a small moderately producing oil field with a few pump jacks, and a small refinery.

Then I want to invest the income into growing that and tapping more reserves, and getting permits for a larger refinery that also did bio fuels from easy to grow grasses - not corn.

Then I would proceed to buy overseas lands, and hopefully become a 6th place oil company competitor to the big 5, and sell my gasoline at my own gas stations with much more environmentally sound methods, cleaner gas, and a much cheaper price.

Then comes the raising of an army...

 

You could get into the cocaine production business as an alternative pathway to raising your army, and in the meanwhile get loads of green rep.

 

We are so much alike...

 

I always warn the fools that they are about to make a mistake but if they insist to do it then why shouldn't I profit?

We have been discussing here a long time, you remember when in the beginning of this war, I posted that this war is about oil and arm and you said it is about "democracy" and "terror", so I bought the stocks and made a profit.

Do you remember that long time ago, I said US economy and dollar will go down the drain and you said economy is great and Bush is genius? I speculated against dollar and made a killing in profit.

This time, I am telling you that it is good to buy the rental property from desperate Americans and get a good return, so don't be a fool and make a profit.

 

That lying wretch of a CFO Lehman had, has been reassigned. They should just toss her ass out, an elevated window nonetheless.

I wonder who LEH is raising capital from because the offering was for stock at $28, haha. Deal will most likely be redone and hopefully those idiots will just get out of it all together.

 

You don't have to give up much or suffer really.. Its more of a lifestyle adjustment than a change. Its pretty easy, and anyone can do some really simple things to reduce their consumption.

You do raise a good point though, with the Amish. I doubt the oil/energy costs are having a negative affect on them. They're probably laughing their arses off right now.

Yes, all this while still living in mommy and daddys basement. Run along and play no Julian...

 

I already mentioned that fools don't take advice, thank you for proving my point.

 

Oh no, thank you..

 

Bubble prices are still to high to get any ROI. For most of the older brick apartment buildings the heat/water/sewage are paid for by the owner. In the New York metro property taxes are also sky high. There's some buildings in half decent areas in the $450,000 to $500,000 range with 4-2 Brm or combination of smaller units. There's also the danger of rent control laws that could make the properties worthless. You need to crunch the numbers in black and white. Playing the current market is like catching a falling knife. It's easy to give advice when you are living in your mom's basement.

 

Even subprime borrowers could get mortgages, so the total pool of potential tenants has never been such an extreme credit risk. One of my friends is just getting out of the landlord business now and ironically selling the house to one of their old renters who managed to get bank financing despite never being able to pay rent on time.

Of course there are people renting because it makes strategic financial sense, but I don't think this is the majority...

 

Let's not overlook the role of Fannie Mae and the regulators, in pushing financial institutions to give out these fast and easy loans to marginal borrowers, in a social crusade to encourage home ownership, regardless of the economic insanity behind such an endeavor.

 

There are many areas that you can already get a quite good rate of return both on commercial and residential properties, you just need to know what you are doing and how to shop.
I ignore your last remark since I know you are just upset and defending your lover and fellow trailer park neighbor.

 

May overall CPI is expected to jump 0.5%

The Labor Departmentreported initial claims for state unemployment benefits increased to 384,000 in the week ended June 7 from a revised 359,000 for the prior week.

The number of continuing unemployment claims rose 58,000 to 3.139 million, a four-year high, in the week ended May 31.

To make matters worse high food prices have just begun. Corn for July delievery gas risen to $7.09 a bushel. Supplies are so tight that the recent flooding in the Midwest may drive prices to $10 a bushel. Wheat is a $8.69 a bushel, and soybeans are $15.16. Diesel also hit $4.79 a gallon, a new record.

What is a good rate of return in your opinion? A few thousand dollars a year on a property declining in value doesn't seem like such a great deal.