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This feels like a feel-good article designed to stem the negativity in the market over oil prices. Who thinks of falling prices as wealth transfer? And the arti
by grok2 11y ago
This feels like a feel-good article designed to stem the negativity in the market over oil prices. Who thinks of falling prices as wealth transfer? And the article doesn't even show wealth transfer and instead talks about more consumption due to cheap oil.
- mcguire 11y agoIf you were an airline expecting to pay $100/bbl and are now getting oil for $40/bbl, it would look an awful lot like manna is falling from heaven. Or at least that the OPEC countries are transferring a chunk of their treasury to your asset sheet.
- refurb 11y agoWho thinks of falling prices as wealth transfer? Seems like a reasonable description to me. Oil price = $100/bbl Gas = $4/gal I spend $400 per month on gas. Oil price = $25/bbl Gas = $2/gal I spend $200 per month on gas. The extra $200 I have each month used to go to the oil producer.
- grok2 11y agoIt was a wealth transfer when the prices were higher -- you were giving your money ultimately to the oil producers. When the price is down, you are just saving money -- there is no transfer of wealth.