Posted on June 1st, 2008 in Mr Mortgage's Personal Opinions/Research
They got me lookin’ guys. I get up to the mountains within 15 miles our lake house and I realize I am on 1/8 tank, the baby needs to eat and wife has to use the bathroom. So, hey why not stop and fill up at my local Chevron, then I won’t have to on the way home. I can save time! Giddy-up.
It has been two weeks since I got hit upside the head with a whopping $100 partial diesel full-up and quite frankly forgot about the whole incident. Link to 5/19 Post.
I swipe the card and sit back inside the truck while my wife and kid do their thing. I put on my favorite Elvis CD and all of a sudden I hear the load clunk. I said ‘that was fast, maybe the pump handle slipped and it shut off’. Nope, not even close.
I look up and there goes another hundy…$100 for a partial fill-up. HOWEVER, this time it was only 19.421 gallons, as the price went up to $5.149 per gallon from $4.949 per gallon two weeks ago. The fill-up cost about $80 2-3 weeks before that. Are you freaking kidding me! 20 CENTS PER GALLON IN TWO WEEKS and a buck in a month in a half! CONTINUED…
We are in serious trouble. For the remainder of the post I am just going to cut and paste my post from two weeks ago. Everything still applies. –Best Mr Mortgage
FROM 5/19 POST…
“Thank you Mr Bernanke is all that I can say.” Who else is there at which to point the finger?
We can talk about Asian and Indian growth, weak refining capacity in the US and geopolitical risk premiums all day long, but I am rate of change kind of guy. The massive rate of change in crude and gas prices are perfectly in-line with the dramatic cut in the Fed Funds Rate and subsequent significant weakening of the US dollar.
Some will say we have had artificially low prices for years and now are catching up to reality. Perhaps, but again the rate of change over such a short period of time is what is significant to me and likely most consumers.
To this mortgage insider and Wall Street outsider the following are what I have noticed have had the biggest rate of change since Bernanke started to ratchet down rates at the fastest pace in history after spending months in 2007, along with Hank Paulsen, denying a problem even existed.
-crude oil and gasoline rising
-food costs rising
-mortgage loan, credit card and auto loan defaults rising
-banks Level 2 ‘assets’, Level 3 ‘assets’ and leverage rising
-stock holder equity shrinking
-the Fed’s balance sheet shrinking
-mortgage rates rising
-home values falling
and finally, since the last ‘shock and awe’ move on the day Bear Stearns collapsed…-stock prices rising of the very same handful of banks who invented the recent manifestation of structured finance that has blown up in the world’s face and that are now being rallied around by the financial press and Wall Street.
On the surface it sure looks like 300 million Americans and God knows how many billions of people globally, have been thrown under the bus to save a handful of alchemist banks who got us into this mess in the first place.
After seeing the $100 price tag for a partial fill, I actually joked about calling AAA, as whatever cost I incurred, in excess of the free towing that comes with my premium subscription, maybe cheaper than the next fill-up.
Perhaps $5 is not that shocking to some, but it sure caught my attention. Different folks will have different price trigger points but I think that the $5 price tag is psychologically significant. I spent the next hour after filling up talking about how what we need to do to reduce our personal gas consumption. -Best, Mr Mortgage
ARE YOU READY!! THIS IS NEAR SACRAMENTO, CA ON 5/19 – $4.949 PER GALLON
FROM THIS WEEKEND – $5.149 PER GALLON