What do people think of gas prices?

[Sigman]

With the fall of IndyMac, my forecast of gas prices going to $20/gallon keeps getting closer.  Inflation will increase more and more as the Feds print more money to bail out (in the near future) Fannie Mae and Freddie Mac.

To think of it, $20/gallon may be a little low.

Cheers,
Michael

[thelews]

quote:Originally posted by Sigman

With the fall of IndyMac, my forecast of gas prices going to $20/gallon keeps getting closer.  Inflation will increase more and more as the Feds print more money to bail out (in the near future) Fannie Mae and Freddie Mac.

To think of it, $20/gallon may be a little low.

Cheers,
Michael

The FDIC has 58 billion in assets.  They aren't printing money to bail out a 10% situation, the third largest in history.  During the S&L bailout of yore, 1000 institutions went under.

[glennard]

You got it.  $5 for the gas and $15 for the TAXMAN. :twisted:

[Sigman]

quote:Originally posted by thelews
The FDIC has 58 billion in assets.  They aren't printing money to bail out a 10% situation, the third largest in history.  During the S&L bailout of yore, 1000 institutions went under.

Understood. I'm referring to the mortgage industry rather the banking industry.  The FDIC does not cover mortgages.  The IndyMac failure should cost the FDIC under $10 billion.  Not all banks will collapse.  The mortgage industry will.  Freddie and Fannie Mae funds approx. one half of the mortgages in the U.S. If/when the two fail, they will not doubt be printing money.  When that happens the dollar's value will decrease some more and inflation will increase. US gas prices will be ridiculous.

[mdsalemi]

...as I keep saying, show me some good news...please??

[psmith]

quote: ...as I keep saying, show me some good news...please??

I don't think I've mentioned it before, but I'm an engineer working in land development, so things are pretty bleak right now.  But our company has been around since 1960 and have seen many ups and downs in the market and learned how to ride it out.  So while our business is slow, I was very pleased to hear that the receptionist at our company was seriously looking at buying a house because the crazy prices here in Silicon Valley have dipped a little to where she could afford to buy a home.  So from a big picture perspective I think there's a silver lining to all of this.

[glennard]

I have it on good authority that the sun will come up tomorrow, the tomatos will be redder, and the Pagoda will start.  What more can I ask?

[PnHi]

Just finished putting the 1970 BSA Firebird back together and it's running like a top.  Tank only holds three gallons though... good for 150 to 200 miles.

[Sigman]

quote:Originally posted by mdsalemi

...as I keep saying, show me some good news...please??

The good news is that the market will recover... as long as the feds let the market correct itself... Let the inevitable happen... The market cannot recover when there is no crash...

One little tid bit on IndyMac, it had $19 BILLION in total DEPOSITS as of March 2008.  When there was a run for $1.3 billion, they gave up and let the Feds take over because they feared that they cannot cover anymore withdrawals.  Why?  It's because a majority of their assets were tied into mortgages. As property values drop more and more, the mortgages become worthless.