to break Americans, and make us ask for support from our illustrious gumpiment..... I would rather eat dirt........
Submitted by Tyler Durden on 02/22/2012 23:13 -0500
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Submitted by Lance Roberts of StreetTalk Advisors
The Straw That Potentially Breaks The Camels Back
oil-price-gasoline-022212Back in December I penned an article about the potential for gasoline prices to rise quickly to catch up with surging oil prices. We said then "If we look at just the nominal price data going back to 1990 we can see that there is indeed a very high correlation between oil prices and gasoline prices. While divergences from each other do occur on occassion those divergences tend not to last for very long with gasoline usually correcting towards the price of oil." That is precisely what has happened since the near $3 per gallon of gasoline this summer, which was an effective $60 billion tax break for consumers during the much anticipated retail shopping season, to near $3.50 a gallon today. That 16% rise in gasoline has now effectively wiped out the entire payroll tax cut being extended into 2012.
There has been a lot of media commentary as of late about the recovery in the economy. The dangerous assumption being made here is that the recent upticks in the economic data have come primarily at the expense of inventory restocking and end of year buying of capital goods by businesses to lock in tax credits. Extrapolating those bounces in the data well
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iDealMeat
iDealMeat's picture
If I were BP, I'd drill the Gulf dry, refine it in TX, fill my tankers with gas, and ride the current back to the E.U..
oh.. wait.. industry is already doing that?? ok, then.. never mind..
back to sleep sheep. Feed buckets will be filled back up at midnight..
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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