'They will continue to post refining losses unless crude oil prices go down or the government provides huge subsidies. There is no relief for them unless the government lifts the control on oil prices, which is unlikely due to higher inflation.'
First it was commodities AND stocks. They were going up together, both in America and China.
Now it appears to be commodities OR stocks. Better be sure you pick correctly.
At some point the natural progression may be NEITHER commodities NOR stocks. It wouldn't be the first time in history (if the Great Depression is any indicator).
Further, even peak oil doesn't necessarily mean investing in oil companies is a great plan. What happens when oil/gas field/plants either run dry or are no longer needed? How much money will be made converting them into historical parks?
We've got a nice one in downtown Seattle on prime waterfront real estate no less. Go figure.
Gas Works Park
Stag,
ReplyDeletehttp://www.aviewoncities.com/paris/centrepompidou.htm
That gas works swing set looks a lot like the famous Pompidou museum in Paris.
And don't forget, we can always do a condo conversions or better yet - a condotels.
MAB,
ReplyDeleteIn 1969 French President Georges Pompidou launched the idea of creating a new cultural institution in Paris dedicated to modern art.
1969 is an interesting year. We put a man on the moon. The Concorde jet was first flown that year as well.
http://en.wikipedia.org/wiki/Concorde
On 10 April 2003, Air France and British Airways simultaneously announced that they would retire Concorde later that year. They cited low passenger numbers following the 25 July 2000 crash, the slump in air travel following 9/11 and rising maintenance costs.
In 1969 you could fly to Europe in under four hours. 35 years later (an enormous amount of time in this fast-paced technological era supposedly) we actually lost that ability/technology.
We have also haven't been walking on the moon much lately.
I continue to believe that the prosperity engine is currently firing on far fewer cylinders.
I blew through the Pompidou (and the Louvre) in a couple of hours in the early 1980s.
ReplyDeleteWay too many paintings entitled "oil on canvas." What's up with that?
MAB,
ReplyDeleteWay too many paintings entitled "oil on canvas." What's up with that?
Hahaha! Sounds like a glut. Perhaps you'd prefer the writing on the restaurant wall?
Restaurants Feel Sting Of Surging Costs, Debt
http://online.wsj.com/article/SB120900163110240285.html?mod=googlenews_wsj
Restaurants overexpanded in recent years, too. There were 524,286 eating and drinking places in the U.S. in 2006 -- a 45% increase from 1990, according to the National Restaurant Association. The U.S. population rose 20% during that period, according to census figures.
In part because of the glut, overall same-store sales at about 70 restaurant chains were flat or down in the fourth quarter, says Wachovia Capital Markets. Dips are rare in a business that has seen growth in all but two of the past 26 years, according to Wachovia.
The "No Reservations" chart within the article shows our ongoing path to prosperity. We're going to Candy Mountain. It's going to be an adventure.
http://illusionofprosperity.blogspot.com/2007/11/happy-thanksgiving.html