Message:

<p>[QUOTE=&quot;mikem2000, post: 2301025, member: 30574&quot;]I believe this guy has it backwards.&nbsp; As oil drops in price, products cost less to produce and deliver.&nbsp; Soooo the widget costs less.&nbsp; Lets say you need 1 barrel of oil to produce and deliver 1000 widgets.&nbsp; Now the price of oil drops but because the widgets now cost less, the oil is generating less economic activity (based in dollars) per barrel. Now the author is suggesting the opposite.&nbsp; He is saying, that no matter what, we can only afford to pay x amount for the widget and not a penny more. Soooo, since we all need the widgets this will then determine the price of oil.&nbsp; It is like the cart leading the horse and it is just not how things work.</p><p>&nbsp;</p><p>&nbsp;It really is the cost of oil determining the price of the widget, and not the price of the widget determining the cost of oil.</p><p>&nbsp;</p><p>Mike[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in