6 Responses to “Obama and McCain: Gassy.”

1. #1 |  bob |  August 13th, 2008 at 1:43 am

   Nice job on the Fox piece, as usual. But I don’t think either candidate’s stated positions or their criticisms of each other are the result of their ignorance, or at least not of innocent ignorance.

   Purposeful ignorance? Yup!

   Both candidates are probably intelligent and informed enough to realize the fundamental flaws of the measures each say they support. But they do so anyway in a carefully calculated wager that it might help sway the truly ignorant (and innocent) into voting for them instead of the other.

   That’s the status quo in a two party duopoly that prefers and promotes a chief executive with excessive power simply because it’s easier to sell snake oil to the innocently ignorant that often decide close races.

   It’s a gamble both sides have taken for years, and a situation that both sides seek to perpetuate.

2. #2 |  HtownGuy |  August 13th, 2008 at 9:37 am

   Good column!

   Speculators are an important part of the market process because they’re generally knowledgeable about what they’re trading and their collective wisdom sends important signals about supply and demand. “Cracking down” on speculators is silly. In the first place, it isn’t possible. Oil futures are traded all over the world, well outside of U.S. jurisdiction. In the second place, if you own a 401(k), you’re likely an indirect “speculator” yourself.

   That’s correct, but I’d also add that limiting financial trading is very dangerous because it will decrease liquidity in the energy markets, increasing volatility of prices. The financial markets serve a host of purposes (such as providing a mechanism for settlement of physical energy trades, and hedging instruments critical to suppliers and consumers) all of which generates better forward market information.

3. #3 |  Jesse |  August 13th, 2008 at 12:43 pm

   I get it (and support) the markets sorting out these issues. However, I have a major issue with the increased gas prices… increased heating oil prices. Where I live, almost everyone has oil boilers. I even considered changing to natural gas and people talked me out of it. Natural gas is actually expensive here because so few use it. Fuel oil is MORE expensive than gas at the pump. Firewood and stove pellets have actually gone up in price. All of this equates to some cold Mainers this winter. This is an issue I would like to see the government address because it is in the interest of protecting Americans.

4. #4 |  HtownGuy |  August 13th, 2008 at 4:20 pm

   I have a major issue with the increased gas prices… increased heating oil prices.

   The refiners who make gasoline have an issue with gas prices too, they’re not high enough to be profitable. In the time that crude (the input) has roughly tripled, gasoline (the output) has only doubled. The reason other products from crude, like heating oil, have risen in price even more is because of shifting production as much to gasoline as possible, reducing the supply of other prducts like heating oil or jet fuel (airlines are getting killed).

   I even considered changing to natural gas and people talked me out of it.

   NatGas is extremely volatile in price. It will be for a long time to come (liquification was supposed to fix the supply crunches, being able to ship it in from overseas, but the prices in Asia are so much higher that very little gets shipped here.)

   This is an issue I would like to see the government address because it is in the interest of protecting Americans.
   

   Why, do you want to see how much worse they can make it?

5. #5 |  Jesse |  August 13th, 2008 at 9:14 pm

   ” This is an issue I would like to see the government address because it is in the interest of protecting Americans.

   Why, do you want to see how much worse they can make it?”

   I see your point there! But my point is, many people here have no choice regardless of what the market is doing.

   I guess my biggest beef is with the left-wingers that are glad the price is so high because it is forcing a change in habit. Well, some people have no choice and may freeze this winter. There is not much money in this area. If I’m worried about being able to afford it, I really worry about the poor.

   And BTW, most people, including myself, have 4X4 vehicles because of the winters. Again, thats not a habit but a necessity!

6. #6 |  HtownGuy |  August 14th, 2008 at 10:05 am

   I guess my biggest beef is with the left-wingers that are glad the price is so high because it is forcing a change in habit. Well, some people have no choice and may freeze this winter. There is not much money in this area. If I’m worried about being able to afford it, I really worry about the poor.

   I appreciate your concern for the poor, but more regulation will make everything less available and/or more expensive. Those are the only two results from increased regulation. Humans (non-politician-humans that is) are very adaptive (when not habituated to feed from the government teat). Letting the market work doesn’t always provide for everyone, but it gives everyone a chance.

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