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RE: Good idea if...
By MrBungle123 on 12/20/2010 4:49:27 PM , Rating: 0
Oil prices skyrocket. Gas prices skyrocket. If you were paying about $100 per month in gas before, now you're paying $200. Disposable income plummets. If that figure holds true for only 1/3rd of the US population, you are now talking about billions of dollars redirected from the established market every single month. Higher gas prices also trigger increases in travel and shipping, which in turn affects the tourism industry and increases prices on everything that gets shipped. Disposable income drops further. Depression/Recession anyone?

And depression/recession is good for the oil companies how? Again capitalism will work if you let it. It does not help Shell/Exxon/BP etc if there is massive economic downturn due to highly inflated oil prices. They may see a temporary bump in their profits but a downward spiral over the long term. High prices would also accelerate the development of alternative fuels which could potentially cost them an enormous chunk of marketshare. Ups and downs are a consequence of an unplanned economy but the good side of it is increased personal freedom and over all higher standards of living.

RE: Good idea if...
By Tanclearas on 12/20/2010 7:28:11 PM , Rating: 2
...and yet that is exactly what happened.

A recession is not good for the economy as a whole, but the reality is people will still buy gas. People still need to get to work. They will still drive to see loved ones. Unfortunately, as spending continues to decrease, fewer people will be working. Once they aren't working, even visiting loved ones becomes a luxury. And yes, it did put pressure on governments to actually start taking alternative fuel research seriously.

Those repercussions take a while to impact the oil companies. Greed, and pressure on management to show immediate results, often keeps people from seeing a much bigger picture.

RE: Good idea if...
By Kurz on 12/21/2010 9:14:21 AM , Rating: 2
Money has to be spent in order to get the wealth from it.
Money is still very liquid... except now people are spending what they have, not spending thousands of dollars to finance over a few years.

Money is just a medium of wealth exchange nothing more.
By itself its worthless.

RE: Good idea if...
By Iaiken on 12/21/2010 10:38:17 AM , Rating: 2
Thank you captain obvious...

