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Quote:
Okay, I did a quick Google for an explaination of that, all I got were 50 page airline studies.... Care to enlighten me on how that works. Just a random guess would make me think it's kind of like buying futures??
Honestly, I don't know exactly. I've asked the fuel guys, and the best they can explain it to me is the same as your guess -- we're basically buying Futures.
No one predicted the kind of gains we'd have this year, so we've won on the market and the gains we've seen this year aren't even close to the gains at the pumps.
2003 Mazda6s 3.0L MTX
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2004 Mazda3s 2.3L ATX
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Originally posted by JVT:
Originally posted by Antonio:
Originally posted by JVT:
I blame China and India! 
-J
You blame them for what? Developing? The last time I checked the United States was not the only country allowed to develop. 
They may be cause to the higher gas prices but to use the word "blame" would imply that there are evil intentions behind thier actions.
I was being sarcastic Antonio.
But yes, if you look at the root cause of high gas prices, it's OUR appetite and dependane on it, along with sudden surge of demand coming from China and India.
-J
JVT, my anger was really not directed at you. I am just tired of a certain few mouthing off on the radio blaming others and making outlandish claims on the gas increase.
I swear some people actually feel like God gave America the right to have low gas prices.
Now I hate America? That is a new one to me.
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Wow, who woulda thunk'ed that my inedjucated guess woulda been so darn good???
"Moore has also accused the American people of being the stupidest, most naive people on the face of the Earth. And after last weekend, he's got the box office numbers to prove it!"
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Thanks for the bout of confidence, lol. Aviation and law enforcement have been my lifelong dreams, and I am trying to combine the two. However, if I can't get a flying job, I will probably end up in law enforcement of some kind, but not small town cop crap... -Nick
Well, if you're not an Air Marshall you could always be a Railroad Policeman. Basically Federal Marshalls. Licensed peace officers with inter-state jurisdicition on railroad property. We've got our own everything -- banks, health insurance programs, social security benefits, and even law enforcement. Don't rely on the federal government for crap here. :P
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Originally posted by JVT:
if you look at the root cause of high gas prices, it's OUR appetite and dependane on it, along with sudden surge of demand coming from China and India.
That plus the fact that it hasn't been in the petroleum industry's best financial interests to do any drilling/exploration.
E0 #36
'95 Ranger
'82 Honda CX500
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Originally posted by Viss1:
Originally posted by JVT:
if you look at the root cause of high gas prices, it's OUR appetite and dependane on it, along with sudden surge of demand coming from China and India.
That plus the fact that it hasn't been in the petroleum industry's best financial interests to do any drilling/exploration.
Yeap, thanks to the gubment.
'98 4Runner
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Originally posted by 99blacksesport:
Wow, who woulda thunk'ed that my inedjucated guess woulda been so darn good???
There's a similar process in bonds, referred to as duration... when fund managers have to make known cash flows, say an annuity that has a $100k payment due in 8 years, they can invest in bonds to make sure that they have the money. They invest the, say, $60k in bonds with a duration of 8 years, and a total value at that time of $100k. This way, they can invest in bonds of different maturities, paper rates, yields-to-maturity, etc.
Learn more here: http://www.finplan.com/invest/bondduration.asp
The concept in fuel is essentially the same, except you're buying puts, calls, and various other options/futures for fuel in varying amounts to hedge your bets. You think that fuel prices are going to be at $3 in 2006, so you buy options that lock in your price for 2006 at $2.20. If gas prices hit $3, you're a big winner, but if gas prices drop and are only $2/gal, you lose. There are highly complicated mathematical formulas that go into this, and lots of speculation is involved.
Diesel owns you
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This is a harsh response but:
Buy a different car then. Most likely a civic, corolla, echo, prius, or TDI.
Transportation isn't a static cost, if its necessary that you have private transportation, then find something that is within your means.
Hell I was going to buy a 2000 SS, but when I found out that insurance was insane ($4000/year) and with rising gas prices, I had to settle for a more 'economical' CSVT.
If I couldn't afford the gas on the CSVT, I'd most likely have gotten a TDI.
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Originally posted by Antonio:
I swear some people actually feel like God gave America the right to have low gas prices.
Agreed.
Don't take this the wrong way, I'm very pro-american -- but some americans come off as, spoiled to say the least. America has gotten a little 'too big for its britches'. Meh.
That country needs a strong non-partisan president to stand up to government and the people and drag the country kicking and screaming towards change.
For starters there should be a displacement tax on non-business SUV use. And tax incentives/breaks on cars with smaller displacements ( <2.5  ).
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I'm hopeful that higher gasoline price will encourage people to purchase sensibly-sized vehicles. (GM is already offering big rebates on the H2's).
If the streets will be made safer for myself and my family, I'd be willing to pay 5 bucks a gallon.
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