When he says “When the price gets to a certain level, demand destruction brings it back into balance,” he means they are going to keep raising the price of oil until it’s so expensive you don’t buy it anymore. They’re going to keep raising prices until you no longer even consider buying it. If you have the money, it’s time to buy a cargo e-bike, even if it doesn’t cover 100% of your transit needs.
he means they are going to keep raising the price of oil until it’s so expensive you don’t buy it anymore. They’re going to keep raising prices until you no longer even consider buying it.
Usually this means people will need to lose their jobs, therefore stop driving to work and have no money to go out or do anything.
I have commented already how the American economy is very min-max right now - the people who have money in the markets have more cash than they ever had before, they have a lot to spend, and they are spending it on a luxurious lifestyle. They also appear to be blissfully unaware of how everyone else is living outside of that bubble, so to them, the “economy is great, never better”.
However, I have also noticed serious cutbacks outside of that top 10-20% or so.
I also think the economy never really recovered post-Covid. Commercial real estate is still in a deep depression because - although they tried to make “return to office” a thing - it was a mixed success and the bubble in CRE investment crashed with no survivors. Generally speaking, hiring has been good in only a few sectors - government, health care, education. The rest of the economy is pretty stagnant.
In the markets, most of the gain in recent times is from AI stocks, with the rest of the corporate world also stagnant. And right now, short term interest rates - the bond market - is not keeping up with inflation either.
We may not be in a recession but in my opinion the economy is majorly F’d up all the same.
I have a pet theory that the “money” is being siphoned from peoples’ retirement accounts.
They deregulated multiple safeguards against market concentration risk. Result that corporations have converted working people’s “safe” diversified retirement savings into growth-chasing “pick a winner” stock bets. For example, a 401K account can (now) be like 20%+ invested in a single company like Microsoft or Nvidia.
Then using accounting shenanigans, the AI hype and lots of other trickery certain tech stocks juiced their growth just as the brakes came off and they have sucked an ungodly amount of wealth out of the normal economy.
This is an epic (real) wealth transfer beyond anything I’ve seen or imagined.
If there is a rug pull, the billionaire safety bunkers will make sense.
This “market” exposure will wipe out the investor class also. This is the enshittification of the stock market.
Well, BlackRock’s Larry Fink is already on record publicly saying that the funding for AI (e.g. data centers) will come from peoples’ savings, pensions, etc …
A generation back the auto workers unions decided to invest the pension funds in the auto companies.
That cheap financing paid for the auto manufacturers to afford to close the unionized plants and move them to Mexico. Byeeeee! Enjoy your unemployment!
When he says “When the price gets to a certain level, demand destruction brings it back into balance,” he means they are going to keep raising the price of oil until it’s so expensive you don’t buy it anymore. They’re going to keep raising prices until you no longer even consider buying it. If you have the money, it’s time to buy a cargo e-bike, even if it doesn’t cover 100% of your transit needs.
Usually this means people will need to lose their jobs, therefore stop driving to work and have no money to go out or do anything.
AKA recession time
I have commented already how the American economy is very min-max right now - the people who have money in the markets have more cash than they ever had before, they have a lot to spend, and they are spending it on a luxurious lifestyle. They also appear to be blissfully unaware of how everyone else is living outside of that bubble, so to them, the “economy is great, never better”.
However, I have also noticed serious cutbacks outside of that top 10-20% or so.
I also think the economy never really recovered post-Covid. Commercial real estate is still in a deep depression because - although they tried to make “return to office” a thing - it was a mixed success and the bubble in CRE investment crashed with no survivors. Generally speaking, hiring has been good in only a few sectors - government, health care, education. The rest of the economy is pretty stagnant.
In the markets, most of the gain in recent times is from AI stocks, with the rest of the corporate world also stagnant. And right now, short term interest rates - the bond market - is not keeping up with inflation either.
We may not be in a recession but in my opinion the economy is majorly F’d up all the same.
I have a pet theory that the “money” is being siphoned from peoples’ retirement accounts.
They deregulated multiple safeguards against market concentration risk. Result that corporations have converted working people’s “safe” diversified retirement savings into growth-chasing “pick a winner” stock bets. For example, a 401K account can (now) be like 20%+ invested in a single company like Microsoft or Nvidia.
Then using accounting shenanigans, the AI hype and lots of other trickery certain tech stocks juiced their growth just as the brakes came off and they have sucked an ungodly amount of wealth out of the normal economy.
This is an epic (real) wealth transfer beyond anything I’ve seen or imagined.
If there is a rug pull, the billionaire safety bunkers will make sense.
This “market” exposure will wipe out the investor class also. This is the enshittification of the stock market.
Well, BlackRock’s Larry Fink is already on record publicly saying that the funding for AI (e.g. data centers) will come from peoples’ savings, pensions, etc …
A generation back the auto workers unions decided to invest the pension funds in the auto companies.
That cheap financing paid for the auto manufacturers to afford to close the unionized plants and move them to Mexico. Byeeeee! Enjoy your unemployment!