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McCain Implies That Oil Prices are Psychological

politicususa.com — Either John McCain does not understand the laws of supply and demand, or he tried to pull the wool over our eyes in Wilkes-Barre, PA today when he claimed that by lifting the executive ban on offshore drilling, President Bush changed the psychology of the oil market.

Bury

capj71 80 days ago

105 diggs
digg it

tcbishop12, on 07/23/2008, -0/+12McCain is either lying to the American people yet again, or he has no clue about the causes and depths of this crisis. I am tending to believe the latter.
- flavioribeiro, on 07/24/2008, -0/+1He's lying.
  
  He doesn't understand the economics, but he understands the amount of fraud going around. He's using Greenspan's strategy of playing the market's psychology, albeit with a lot less sophistication.
  
  This gimmick worked for decades, but not anymore. The market has called every bluff, and will continue to do so.
SheilaNoya, on 07/23/2008, -3/+11McCain is afraid to admit the TRUE reasons for the oil prices dropping:

1. The Democrats are getting close to passing a bill that will force oil speculators to follow the same rules as other commodity traders. No more "anoymous" oil trading. No more "secret" deals. Of course, the Republicans are trying to block this bill (again).

2. Our oil inventories are now far higher than previously predicted due to people driving less. We also have a higher than expected inventory of distillates - so high that we're actually selling refined gasoline to other countries now.

3. Bush has stopped threatening to blow up Iran and has started negotiations with them. The "fear factor" is fading.
- flavioribeiro, on 07/24/2008, -0/+1"The Democrats are getting close to passing a bill that will force oil speculators to follow the same rules as other commodity traders. No more "anoymous" oil trading. No more "secret" deals. Of course, the Republicans are trying to block this bill (again)."
  
  Could you explain what you mean by this?
  
  Currently all kinds of trading are anonymous, in the sense that neither your broker nor the exchange disclose your identity. What would this bill change?
  - SheilaNoya, on 07/24/2008, -1/+4There are currently stringent rules for commodity traders that exclude oil traders (even though oil is also considered a commodity)
    
    Here are the details on the bill introduced by the Democrats:
    
    http://dpc.senate.gov/dpc-new.cfm?doc_name=lb-110- ...
crxvfr, on 07/23/2008, -1/+7I will need to remember that when the attendant charges me $100.00 to fill my tank.
I'll hand him a ten and tell him that psychologically, its a 100 spot.
- pnunn, on 07/23/2008, -0/+3It's creative problem solving like that that will get us through this! I applaud your reasoning sir!
wiggles, on 07/23/2008, -7/+3Psychology is a huge component of any bubble. We've seen it in tech, we've seen it in housing. Oil is no different.
- gpit2286, on 07/24/2008, -1/+1I thought the same thing... but I guess the people who are digging you down don't understand gas prices are just predictions....
pnunn, on 07/23/2008, -1/+6Just wait- this McCain stuff gets better everyday.

Tomorrow's headline:
"McCain refers to death toll in Iraq as 'Flesh Wound.' Calls distraught mothers 'drama queens.' Six billion republican bloggers race to digg to wiki everyone to death with out of context statistics since their candidate is too much of a ***** to speak without making them a laughingstock. Jilted bloggers claim that McCain's mental deficiency caused by 'digg's liberal bias' and 'Kevin Rose manipulating the algorithm.'"
- tykwondingo, on 07/24/2008, -0/+2well said.
danfive555, on 07/23/2008, -0/+4Oil prices are in your mind folks. Phil Gram strikes again.
tykwondingo, on 07/24/2008, -0/+3"There is no spoon" America.
ImperialRome, on 07/24/2008, -3/+2Thats funny, because it took three months for oil prices to rise from $120 to $145 a barrel, with all that uncertainty and OPEC announcements that they cannot increase production, yet it only took SEVEN DAYS for oil to fall from 145 to 120 after the lifting of the offshore drilling ban.

$3 gas is coming to a gas station near you.
- neognostic, on 07/24/2008, -0/+2Your logic is to put it mildly, flawed. Explain to me how lifting the ban, which won't effect supplies for 7 to 10 years, and will be rescinded anyway when Obama is President, cause current pricing to go down?
  Secondly, Saudi Arabia did announce they were going to increase production, and the price went up. Then 5 days later, they announced that they would no increase production, and pricing leveled off.
itzdiceman, on 07/24/2008, -4/+2Obvious. It's nice to see the poster, article, and posts above me spinning it.

"The real reason why oil prices have dropped is because demand is dropping."

This is only half the formula. The lift on offshore drilling represents a movement in the US increasing supply. And what happens to the price when supply goes up and demand goes down?
son23kat, on 07/24/2008, -5/+0Dugg. Please digg too. Thanks!
http://digg.com/educational/PRC_Nursing_Board_Exam ...
http://digg.com/educational/PRC_Nursing_Board_Exam ...
algaeturd, on 07/24/2008, -0/+0I can actually hear him getting dumber by the day.
Falldog, on 07/24/2008, -0/+1He's right though. I saw a shrink and was able to get gas for only $2 a gallon. Unfortunately now I need a shrink to get over the fact that my drivers license was revoked.
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McCain Implies That Oil Prices are Psychological

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