Originally Posted by
sickboy
http:///forum/post/2924366
There was nothing you said that was inaccurate, but the price increase we saw had nothing to do with Supply and Demand, Supply stayed constant and Demand actually decreased (we know now, not at the time). Yes, the option of drilling (even though it was only an executive ban lift and not actual permission was it?) did drop the price, but while wall street was refusing to see that the world economy was going to collapse, they were using false expectation of supply and demand and thus caused the manipulation that helped drive our economy even further into the ground.
I was just offering another perspective, not trying to say that anything you said was wrong per se.
Well if you want to be really exact. Supply increased too, but demand outpaced it. With the speed of the fall, I do think a lot of the price was based off of perceptions rather than actual market conditions. Kind of like a self fulfilling prophecy.
I also think Bush's announcement kind of was the pin the popped the bubble.
The bans were two fold, one was executive, and the other by congress.
Both had to expire before it would open up the area. Bush lifted his, and congress didn't come to new terms, so the legislation was sun-setted, and thus lifting their ban.
But the actual mechanics of selling the leases, then pre dilling research really hadn't started.
Obama creating a new ban, or congress, won't actually change the supply. However it might create a perception of a shortage. Which possibly could increase prices. Depending on the play it recieves, if (and when imo) it happens.
Just like if you know there is a sale on the same product tomorrow you'll wait for tomorrow, or if you know the price is going to go up when the sale ends, you'll buy it before the sale goes off.
well because our country is in a huge economic crises right now, and our country needs to raise money, and the poor dont have money so we raise the tax on the rich. 
