The day after the Chevron refinery fire I was talking with a friend. I emphatically told him I thought gas was going lower. And - if you could have seen his reaction. Clearly he thought I'd lost my mind.
Everyone says it's going up!, he said.
Me - Yeah, but that is a temporary thing.
I have to admit though.. I was a little nervous about this call. Corn prices bla, bla, bla. Then the refinery shut down. Not to mention, Silicon Valley looks like it is trying to recover.
However I still stand by my call. Gas will never get to 5 bucks a gallon in California. I still believe max pain is 4.50.
I think there could never be a better time to have a refinery fire, honestly. And these are my reasons why.
1. Europe auto sales lowest since 1994.
2. Heavy Duty Trucks sales have collapsed.
3. McDonald's sales were worst in 9 years.
4. Las Vegas gambling revenue off 4.5%. (which is especially troubling since in May, it was up 29%) Here.
5. OPEC cuts production, warns of risks to oil. (could reduce forecast growth by as much as 20%)
So far this year, it's looking like a carbon copy of 2008. Video game sales caved first. Then CAT warned. (Caterpillar) Earnings season has not been great at all.
We will probably try to test 4.50, but that is just going to make it so President Money Bags is in a really tight position. To print or not to print. I say he doesn't. If he was smart, he say - I'm out bitches! And leave the gigantic cratering mess to Romney. Oh, what am I saying? He needs to slam that cash out to his buddies before his term is over. And I really expect it to be. Not because anyone on earth likes Romney, but because to vote for President Money Bags says you are okay with the way things are now. Chaos.
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I'm considering working four ten-hour days once prices go that high, so I don't have to commute on Fridays. Don't really want to do it, but may have to.
ReplyDeleteI can't wait for November.
Purple Magpie
Just out of curiosity, how do you feel about the third party choice? A waste of a vote, or a good way to get displeasure across?
ReplyDeleteI voted for Ron Paul in the primary. (Is he still even on the ballot? I'm not sure WTH happened with him.) I knew I'd be splitting the vote, but I just couldn't bring myself to vote for Romney. I think I said I'd never vote for him.
ReplyDeleteSo, I assume you must mean Gary Johnson - or? I think he will get lost in the noise since he's not well known. This election is going to be a very polarizing. And Romney just called out the teachers unions. I think I might fear them more than the IRS. They might be more powerful. So, it could be really close.
So... I am just going to swallow the poison. Months back when I thought President Money Bags had a decent chance of winning, I was willing to split the vote on principle. Not so much now?
I see your point there. Thanks for your take. I am so thrown at this point, I'm trying to figure out how to not waste my vote without voting in either of the "evils."
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