350zCommtech's Account Talk

[CountryBoy]

Bailing out insurance companies is next. On the news this morning...tapping into the $700B. I thought they came up with that figure as the maximum necessary to stabilize the BANKS. It was an "up to" number...

L2R,

It's good to see ya back.

CB

 

[nnuut]

Hey L2R good to hear from you.
Question:
Why is the price of diesel higher than the price of gasoline?:suspicious:
Norman

 

[CountryBoy]

Hey L2R good to hear from you.
Question:
Why is the price of diesel higher than the price of gasoline?:suspicious:
Norman

Is this a trick question? If not I believe it's a combo of world wide demand, are greenies want us to use low sulfur diesel which is more expensive and a little higher fuel tax.

CB

 

[350zCommTech]

Can this whole situation get any more insane or anti-capitalist??? What's next? I don't even want to speculate what else is coming.

Yes, it can. How about buying foreign debt with our tax money?

Korea Development Bank to Sell Short-Term Debt to Fed (Update2)

By Bomi Lim

Oct. 28 (Bloomberg) -- State-run Korea Development Bank received Federal Reserve approval to sell as much as $830 million of commercial paper to the U.S. central bank, becoming the first Korean bank to tap the new funding facility.

KDB, South Korea's largest issuer of overseas debt, can raise $400 million in the U.S. by selling short-term notes, Sung Joo Yung, a spokesman for the Seoul-based bank, said today by telephone. The bank will roll over an existing $430 million of debt, he said.
Kookmin Bank, South Korea's largest, was also deemed eligible to sell commercial paper to the Fed, spokesman You Jung Youn said by telephone from Seoul. The amount of debt the Seoul- based lender will sell hasn't been determined, he said. The Maeil Business Newspaper today reported Kookmin would be able to borrow as much as $50 million.

The moves may help ease concerns about Korean banks' capacity to raise dollars amid a global credit crunch that has increased the cost of funding. South Korea's government pledged last week to guarantee as much as $100 billion of the overseas debt of local banks to ease a liquidity squeeze. The state guarantee will cover about 140 percent of each bank's foreign- currency debt due by mid-2009.

``It is very positive that Korean banks succeeded in securing a new line of overseas funding,'' said Ku Yong Uk, a banking analyst at Daewoo Securities Co. in Seoul. ``This doesn't signal the resolution of a foreign-currency liquidity crunch for banks, but is a step in the right direction.''

The Fed is seeking to stem the credit-market seizure and revive demand for commercial paper, the short-term borrowing that companies use to finance day-to-day operations, by offering to buy 90-day debt of top-rated firms at a rate of 2.88 percent. The Fed began buying the debt directly from companies yesterday under its Commercial Paper Funding Facility created three weeks ago.

Several dozen companies including General Electric Co., Morgan Stanley and American Express Co. have registered to be in the Fed's program.

To contact the reporter on this story: Bomi Lim in Seoul at blim30@bloomberg.net
Last Updated: October 27, 2008 22:39 EDT
http://www.bloomberg.com/apps/news?pid=20601087&sid=aH.7.EElweAU&refer=home

 

[350zCommTech]

Hmmm....I 'm seeing something strange. While the market is selling, the USD/YEN continues to make higher highs. We might be seeing the currency intervention the IMF hinted at last night, or it's a bullish divergence and we're about to see a rally, starting in Japan tonight?

Don't fall in love with the upside. Intervention in the Yen is causing this rally. The Fed cut is meaningless. GM/Chrysler merger is a desperation act. We have not seen capitulation yet. Just my humble opinion.

 

[350zCommTech]

Another awesome Rick Santelli video.

http://www.cnbc.com/id/15840232?video=908179107&play=1

 

[nnuut]

Hey L2R good to hear from you.
Question:
Why is the price of diesel higher than the price of gasoline?:suspicious:
Norman

Is this a trick question? If not I believe it's a combo of world wide demand, are greenies want us to use low sulfur diesel which is more expensive and a little higher fuel tax.

CB

Traditionally diesel was cheaper than gasoline in the USA. Then things changed, and diesel is more expensive than gas. What has changed?
Some years ago, gasoline was at the end of the process and was basically made from diesel. That made diesel cheaper than gas because it was not refined as much as gas. Now the way I understand it is that crude is made into Gas and diesel is made from gas by basically adding oil and additives to regular unleaded gas, causing it to be more expensive than gas.
I really have to do some research on this subject because I really don't know, that's why the Question.
The truckers are still catching hell, and that’s driving up prices of everything that’s shipped.:worried:

 

[nnuut]

Some opinions on the subject:
Why Is Diesel More Expensive Than Regular Gas?

by: Felix Salmon March 13, 2008

Felix Salmon


Mufson reports on rising gas prices:

Gasoline rose to a nationwide average of $3.246 a gallon for regular unleaded. Diesel, which has been setting records almost daily for the past three weeks, hit a nationwide average of $3.876 yesterday.
​

Which means that diesel is now 63 cents per gallon more expensive than regular gasoline. I don't have a graph of the diesel-gasoline spread, but I'd guess that's at or near all-time highs; it wasn't so long ago that diesel was cheaper than gasoline.
Mufson reports that "more and more Americans are driving cars that use diesel because they get better mileage," but that trend is unlikely to stay strong for long if diesel is 20% more expensive than gasoline. The calculations can get very technical, and involve resale values as well as fuel-economy considerations, but with today's fuel-injection technology it's unlikely you'll find a diesel-powered car which gets 20% better mileage than the equivalent gasoline model.
Why is diesel more expensive than gasoline? Here's the official answer, from the Energy Information Administration:

Until several years ago, the average price of diesel fuel was usually lower than the average price of gasoline. In some winters when the demand for distillate heating oil was high, the price of diesel fuel rose above the gasoline price. Since September 2004, the price of diesel fuel has been generally higher than the price of regular gasoline all year round for several reasons. Worldwide demand for diesel fuel and other distillate fuel oils has been increasing steadily, with strong demand in China, Europe, and the U.S., putting more pressure on the tight global refining capacity. In the U.S., the transition to low-sulfur diesel fuel has affected diesel fuel production and distribution costs. Also, the Federal excise tax on diesel fuel is 6 cents higher per gallon (24.4 cents per gallon) than the tax on gasoline.
​

What that means for the diesel-gasoline spread, I have no idea. But don't expect to see the US becoming a Europe-style land of diesel-powered cars any time soon.
http://seekingalpha.com/article/68468-why-is-diesel-more-expensive-than-regular-gas

Inside Story
Smoke and Mirrors: Why Are U.S. Diesel Prices So High?
Date posted: 12-12-2005
STORY TOOLS
With me being a professional automotive journalist and all, Ted Haberkorn figured I was just the man to answer his question.

Ted Haberkorn was mistaken. He should have just asked me about quantum physics in Farsi.

Here's what's on Ted Haberkorn's mind: In his 81 years, Ted has owned, by actual count, 42 vehicles, some of them diesels. Ted likes diesels. He drove a couple of Mercedes-Benz diesels, and right now, he drives a diesel-powered Dodge Ram Quad Cab pickup. Which is cool: When I'm 81, I'll be lucky if I can drive a Rascal.

Anyway, Ted Haberkorn doesn't understand why a gallon of diesel fuel costs more — considerably more — than a gallon of regular gasoline, when not that long ago, diesel was substantially cheaper than regular gas.

How much more? "I've paid 40, 50, even 60 cents more per gallon," he says. "What's going on?" he asks.

I've wondered the same thing. "Lots of people have wondered the same thing," says Allen Schaeffer, executive director of the Diesel Technology Forum, an information clearinghouse backed mostly by car and truck manufacturers, as well as a fuel company or two.

No easy answer
Unfortunately, Schaeffer says, there is no easy answer. [more]
http://www.edmunds.com/insideline/do/Columns/articleId=108465

 

[350zCommTech]

Bailing out insurance companies is next. On the news this morning...tapping into the $700B. I thought they came up with that figure as the maximum necessary to stabilize the BANKS. It was an "up to" number...

Welcome back.

 

[350zCommTech]

GS is down big and MS is also down despite the market being up big?


And small caps are saying BS.

 

[Minnow]

Are the Japanese intervening on the yen? MS has big Japanese holders...

 

[luv2read]

Thanks. 350Z is the place to be. :laugh:

 

[350zCommTech]

Are the Japanese intervening on the yen? MS has big Japanese holders...

Yes, 90-91 seems to be their line in the sand. Forex is a huge market. Don't know how long they can keep it up.

 

[Minnow]

Yes, 90-91 seems to be their line in the sand. Forex is a huge market. Don't know how long they can keep it up.

Heard some talking head claiming 80 was their "line in the sand" and that all this was normal reactionary posturing... Thanks to your thread and education I knew to claim BS.

 

[350zCommTech]

Heard some talking head claiming 80 was their "line in the sand" and that all this was normal reactionary posturing... Thanks to your thread and education I knew to claim BS.

If USD/YEN goes to 80, the Nikkei would be at 4500, and the Dow would be close to it.

 

[Frixxxx]

If we see those numbers, they'll start the "GOLD" standard again. The Yen being strong has hurt even the Japanese citizens.

The dollar is losing some ground right now, so I think 95 today will be a blessing.:blink:

Great to see you again L2R.

 

[350zCommTech]

I posted here many times that the bailout was BS and LIBOR can't be trusted right now. This is funny.:laugh:

White House to banks: Start lending money

By JENNIFER LOVEN, AP White House Correspondent Jennifer Loven, Ap White House Correspondent – 8 mins ago

WASHINGTON – An impatient White House served notice Tuesday on banks and other financial companies receiving billions of dollars in federal help to quit hoarding the money and start making more loans.

"We're trying to do is get banks to do what they are supposed to do, which is support the system that we have in America. And banks exist to lend money," White House press secretary Dana Perino said.

Though there are limits on how much Washington can pressure banks, she noted that banks are regulated by the federal government.

"They will be watching very closely, and they're working with the banks," she said.
She said that Anthony Ryan, Treasury's acting undersecretary for domestic finance, delivered a speech in New York on Tuesday that made this point. Ryan spoke to the annual meeting of the Securities Industry and Financial Markets Association, a group of Wall Street executives.

"The way that banks make money is by lending money. And so, they have every incentive to move forward and start using this money," Perino said.

There has been some evidence of loosening lending, Perino said. But it's not enough to calm stock markets or help small businesses that depend on a free flow of credit, not just to expand but to maintain operations through making payroll or financing inventories.

Under the authority of the $700 billion financial bailout plan approved by Congress and signed by President Bush earlier this month, the Bush administration plans to dole out $250 billion to banks in return for partial ownership. The Treasury Department, which is overseeing the massive capital injection program along with the rest of the bailout, will pour $125 billion into nine of the country's largest banks this week. Another $125 billion will go to other banks.

Treasury Secretary Henry Paulson has said the money would be used by banks to rebuild their reserves so that they would resume more normal lending practices — a crucial ingredient to breaking through a debilitating credit clog that is hurting the national economy and threatens to bring about a deep recession. More recently, though, Paulson said the money could be used by banks to buy other banks to make them both stronger to weather the financial storms.

On Friday, PNC Financial Services Group Inc. said it had received $7.7 billion in cash through selling stock to the government under the bailout program. PNC then said it planned to buy National City Corp. for $5.58 billion.

The rescue program is just one of the efforts the government is making to combat the worst financial crisis to hit the country since the 1930s. The Federal Reserve began a program Monday to purchase the short-term debt of businesses, known as commercial paper. This market has been frozen since the collapse of Lehman Brothers spooked credit markets last month.
But so far, the efforts to battle the severe credit squeeze have shown little in the way of results. Libor, the London Interbank Offered Rate, a key goalpost for international lending, edged down only marginally on Monday and still remains at elevated levels.
http://news.yahoo.com/s/ap/20081028/ap_on_bi_ge/financial_meltdown

 

[Silverbird]

I posted here many times that the bailout was BS and LIBOR can't be trusted right now. This is funny.:laugh:

Er, :laugh: or ?

 

[350zCommTech]

Er, :laugh: or ?

Actually then , since it was our tax money!

 

[350zCommTech]

To the person that gave me brownie points this morning: Please send me a PM.

Unless people leave their names, I have no idea who gave it and no way to return the favor.