Gas Price Question? - Page 6

TEX · 10-19-2011, 09:42 AM

I see that the price of oil went up a bit overnight and the price of gasoline immediately followed. Up a few cents from yesterday, which is up a few cents from the day before. And up about .10 cents since last week. I was wondering how come when the price of oil falls, it takes awhile for the price of gasoline to fall? A local TV station in Houston did a story on this and reported that the price of the gas at the station has already been paid for so when the price of oil falls, the savings at the pump is not reflected until the supply on hand is expired. Why isn't that the case in reverse?

Donger · 10-19-2011, 02:13 PM

Quote:

Originally Posted by banyon

Because it's essentially a form of hidden theft against those regular shareholders.

We should all care about it.

I didn't force them to buy HP. Neither did you. When you invest, you take risks that are typically out of your control.

If you care about those people, fine. I don't.

Donger · 10-19-2011, 02:14 PM

Quote:

Originally Posted by banyon

I missed this post, but of course oil is an inelastic good, and solar powered highway-safe vehicles are neither affordable nor plentiful.

But yes, If I had a viable alternative, I would take it.

You can walk, yes? Ride a bike?

blaise · 10-19-2011, 02:14 PM

How do you know the CEO's didn't create value? Isn't that what we heard with Obama's stimulus plan- that we can't measure it by jobs lost or gained, but rather by how many would have been lost without it? How do you know what the value would have been with a different CEO?

KILLER_CLOWN · 10-19-2011, 02:24 PM

One reason, dollar devaluation. Those pretty printed pieces of paper only go so far.

**banyon** · 10-19-2011, 02:24 PM

Quote:

Originally Posted by Donger

I don't really put much stock (pun intended) in what a bunch of tree-huggers think about the CEO of an energy company.

If I were a stock holder and had a massive return on my investment during Raymond's tenure, I wouldn't care what his retirement benefit was. He also worked there for 40-something years. I'll have to look up the details.

It was more than just tree huggers who this deal irritated (Hence the "Investors AND" at the beginning of the article).

**banyon** · 10-19-2011, 02:26 PM

Quote:

Originally Posted by Donger

You can walk, yes? Ride a bike?

I used to walk to work every day when I lived in Lawrence and reasonably close to my job.

17 miles now into a 45 mile per hour wind with -20 to -30 wind chill does not work.

Donger · 10-19-2011, 02:28 PM

Quote:

Originally Posted by banyon

It was more than just tree huggers who this deal irritated (Hence the "Investors AND" at the beginning of the article).

Yeah, sorry, I'm not going to watch 45 minutes of congress critters showboating. I don't doubt that some investors were upset, and they are free to pull their money out if they don't like it.

**banyon** · 10-19-2011, 02:29 PM

Quote:

Originally Posted by Donger

I didn't force them to buy HP. Neither did you. When you invest, you take risks that are typically out of your control.

If you care about those people, fine. I don't.

If it were a problem specific to HP, then I don't know that I would care too much either. But it's not, it's just emblematic of the industry that your compensation does not appear to actually be tied to creating value like it is for regular americans.

Win or lose, all these guys get their benefits and golden parachutes. But if you're a union laborer or a factory worker and want to push for 1 dollar in wages more, then by golly the wrath will come down on you!

Donger · 10-19-2011, 02:30 PM

Quote:

Originally Posted by banyon

I used to walk to work every day when I lived in Lawrence and reasonably close to my job.

17 miles now into a 45 mile per hour wind with -20 to -30 wind chill does not work.

Only because you choose not to make it work. Like I said, no one is forcing you to buy gasoline. You buy it because it is efficient and convenient.

**banyon** · 10-19-2011, 02:31 PM

Quote:

Originally Posted by blaise

How do you know the CEO's didn't create value? Isn't that what we heard with Obama's stimulus plan- that we can't measure it by jobs lost or gained, but rather by how many would have been lost without it? How do you know what the value would have been with a different CEO?

Because they can easily be compared to their competitors who succeeded whereas there is no such easy comparison for a national economy and a "what if" scenario.

**banyon** · 10-19-2011, 02:32 PM

Quote:

Originally Posted by Donger

Only because you choose not to make it work. Like I said, no one is forcing you to buy gasoline. You buy it because it is efficient and convenient.

No, I am not forced like at gunpoint. No one is. But living in practical reality, it's pretty difficult. It's not like saying I don't like Froot Loops, so buy another cereal. There is no easily substitutable good, but you know this.

I'd like to be off the grid with solar and wind and not pay the utility companies either, but that requires significant startup capital.

Amnorix · 10-19-2011, 02:35 PM

Quote:

Originally Posted by banyon

Apple's a great example in your favor of a CEO who deserves to perhaps be overcompensated, but there are probably many more on the other side of the ledger. Look at their competitor HP, for example:

This is just a few short term CEO's in less than a 5 year period. It's not like they founded the company or were the inspirational genius behind their products like Jobs. They didn't create value in the least. They lost value.

I agree. There are many massively overpaid CEOs. I'm definitely well aware of that being the case. Let's not even talk about people like the CEO of Countrywide, Fannie Mae and others who took home huge paychecks while either committing fraud, turning a blind eye to fraud, or otherwise participating -- and furthering -- a bubble that caused their companies and many innocents to be destroyed. While not technically illegal in many circumstances, their greed/stupidity was beyond description.

But what do we do about very overpaid CEOs? I've never heard a good solution to the supposed problem.

And how do we determne which CEOs (like Jobs) deserve every penny no matter how many pennies they get?

I'm not sure this is an area that regulation can effectively address in a way that doesn't have massive potential for massive unexpected adverse consequences.

Donger · 10-19-2011, 02:37 PM

Quote:

Originally Posted by banyon

If it were a problem specific to HP, then I don't know that I would care too much either. But it's not, it's just emblematic of the industry that your compensation does not appear to actually be tied to creating value like it is for regular americans.

Win or lose, all these guys get their benefits and golden parachutes. But if you're a union laborer or a factory worker and want to push for 1 dollar in wages more, then by golly the wrath will come down on you!

Meh. Get back to talkin' gas, hippy!

Donger · 10-19-2011, 02:38 PM

Quote:

Originally Posted by banyon

No, I am not forced like at gunpoint. No one is. But living in practical reality, it's pretty difficult. It's not like saying I don't like Froot Loops, so buy another cereal. There is no easily substitutable good, but you know this.

I'd like to be off the grid with solar and wind and not pay the utility companies either, but that requires significant startup capital.

Yes, I do know this. I just don't like it when people say "but I HAVE to buy gas!!112Q3!"

**mlyonsd** · 10-19-2011, 02:40 PM

Quote:

Originally Posted by Donger

Yes, I do know this. I just don't like it when people say "but I HAVE to buy gas!!112Q3!"

Thanks for reminding me, I have to buy gas on the way home.

10-19-2011, 09:42 AM
TEX I SURVIVED Herm, Scott & Matt! Join Date: Aug 2000 Location: Houston, TX Casino cash: $44843	Gas Price Question? I see that the price of oil went up a bit overnight and the price of gasoline immediately followed. Up a few cents from yesterday, which is up a few cents from the day before. And up about .10 cents since last week. I was wondering how come when the price of oil falls, it takes awhile for the price of gasoline to fall? A local TV station in Houston did a story on this and reported that the price of the gas at the station has already been paid for so when the price of oil falls, the savings at the pump is not reflected until the supply on hand is expired. Why isn't that the case in reverse?
Posts: 10,981

10-19-2011, 02:14 PM	#78
blaise MVP Join Date: Aug 2007 Location: Plano, TX Casino cash: $1240	How do you know the CEO's didn't create value? Isn't that what we heard with Obama's stimulus plan- that we can't measure it by jobs lost or gained, but rather by how many would have been lost without it? How do you know what the value would have been with a different CEO?
Posts: 16,965

10-19-2011, 02:24 PM	#79
KILLER_CLOWN Be HEALED!!!!!!! Join Date: Feb 2002 Location: Fascist State Casino cash: $11111222	One reason, dollar devaluation. Those pretty printed pieces of paper only go so far. __________________ "Not every one that saith unto me, Lord, Lord, shall enter into the kingdom of heaven; but he that doeth the will of my Father ... And then will I profess unto them, I never knew you: depart from me, ye that work iniquity." "If the people let government decide what foods they eat and what medicines they take, their bodies will soon be in as sorry a state as are the souls of those who live under tyranny." - Thomas Jefferson
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