Oil Not COVID May Stall the Economy
The Coronavirus Task Force did not anticipate the oil price decline.
The article below tells how financial services will be badly hurt by the price of oil.
Your comments are welcomed.
When the Invisible Enemy is Controlled, What will the Invisible Hand Do to the Price of Oil?
(Lake Forest, IL April 21, 2020) After COVID-19 subsides, there are critical questions for banks, credit unions and thrifts: What drives the price of oil? What are the implications of a lower oil price? And how does oil affect Net Interest Margins? Will “Adam Smith’s Invisible Hand” drive Oil or will the Oil Cartel?
This is How the Oil Dominoes Fall
50 years ago, in 1970, a gallon of gas was 39¢ and the Consumer Price Index (CPI) was 39 – today the CPI is 256 as of 12/31/19. The CPI difference is 6.5 times the base of 39 i50 years ago. 39¢ x 6.5 =$2.53 or much higher than the current gas price at $1.82 (4/20/20).
If an oldster declares, “gas was cheaper when I was a boy”, say, “Inflation adjusted it is cheaper today.” READ FULL ARTICLE
Written By: m.moebs
Date Posted: 4/21/2020
Number of Views: 228