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M&C 9/18/08 'Washington - In a country that prides itself on free-market principles, US taxpayer dollars are already on the hook for more than 300 billion dollars in financial industry bailouts, and, by some accounts, the government is just getting started...'

GOTTA LOVE THOSE REPUBLICAN FINANCIAL WIZARDS !!

Hi bobthefarmer, I'm Sarah Palin....ask me about dinosaurs..... then ask me about the market meltdown.... my answers will continue to be equally intelligent.

'Hi I'm Sarah Palin.... Ask me about dinosaurs.... then ask me about the housing crisis.... my answers will be equally intelligent !'

Apparently a poor attempt at sophomoric humor by one who apparently thinks the key to change is to; put someone at the controls who has no idea how the thing operates. Its obvious why we don't do this with airline pilots yet we are considering doing it with the Presidency.

'Hi I'm Sarah Palin.... Ask me about dinosaurs.... then ask me about the housing crisis.... my answers will be equally intelligent !'

One thing is pretty clear from this article. Obama will raise taxes substantially and McCain will not (as much). All this talk of the issue of the day doesn't address the real problem in Washington. You can't spend what you don't have. Debt is not cool. We can't just keep spending money we don't have no matter who the presidential candidate is.

I have heard this same 'we may not see oil for 8 - 10 years if we start drilling now' comment in a number of places and by various sources. It appears to me that the 10 year figure is thrown out there to kibosh the discussion of drilling ... after all, if it takes 10 years what's the point right? Didn't we build the transcontinental railroad in 6 years, the Hoover dam in 5 years, landed on the moon 9 years after Kennedy proposed we do so, and fought and won World War II in 4 years. Do you really believe that it's going to take 10 years to poke a few holes in the ground and suck up up some oil. Perhaps it will if the environmental do gooders and the politicians too afraid to take a stand against them have their way. If they are allowed to stop and slow down exploration and production with endless regulation and litigation at every turn in the road it might take 10 years or longer.

On the other hand, America is a can do nation, and if our politicians had some 'cahonnes' an...(Read more of this comment)d did what was good for the nation and expediated the process regardless of the toes the may have to step on or the votes it might cost them, I'll bet we could have oil flowing on a massive scale in a very few years.
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Just as I oppose tapping the strategic oil reserve, I do not want us to squander our in-ground oil at this point in time. Both reserves will be come more and more valuable in years to come, and will be a legacy for future generations. The cost for us? A few more cents at the pump.

We seem to overlook the fact that petroleum is used for much more than fuel-- a huge chemical industry depends upon it, for synthetics, plastics, etc., and when foreign oil eventually dries up (and we have shifted to other energy sources for our automobiles, trucks and tractors), our great-grandchildren will bless us for what we have left them. Allow them to decide when to tap off the rest of the 'easy' oil within our borders. Until then, let the market have its way, and let's watch the value of our holdings skyrocket.

Regarding gas prices, if you've been watching, in today's market the price of oil would be about $80-100/bbl if demand were the only factor, anything above that is due to speculation. The fact that the supply of oil is not increasing tells you that there is no excess capacity. Furthermore, proven reserves are declining; drilling won't help. The only way to reduce the price of oil is to reduce demand and reduce speculation. A recession will do both, so you will probably see the price of oil drift below $80/bbl by this time next year; so the 'winner' of the election will take credit for the drop and will blame 'W' for the recession.

However, if you want a solution to the problem of oil supply, you have to reduce demand permanently and develop alternative fuel sources. I'm listening closely to the subtext from both pairs of candidates to see if they understand. McCain/Palin seem to be Yes/No while Obama/Biden seem to be Yes/Yes.

The real problem is in the idealogic...(Read more of this comment)al denial of reality so prevalent in the right wing of the GOP. Even if McCain does understand, he will have to battle his own party as well as the Democrats; plus if he expires early, we are stuck with the Beauty Queen who thinks oil is forever.

The most convincing argument is that Warren Buffett is betting on Obama/Biden. That seems like a real winner to me, a lifelong independent, social Liberal, fiscal Conservative.(Show less of this comment)

(Surely this economist understands that markets don't react to whats happening right now as much as they do to what will happen in the future. If we start drilling now we may not see oil rolling in for 8-10 years but we will see the markets react to the future now.)
Yes, very true!

Regarding fuel prices. Obama's proposal does not address root cause. Demand is high and will continue to increase (India/China) and therefore price will continue to rise if supply is not increased. Rebate checks just shifts burden to something else and why not just reduce the tax on gasoline. Tax credits are okay for motivating people to change behavior but at the end, it will reduce demand but just shifts tax burden to someone else. On the Pennies per gallon likely result. if excess supply exist, it will prevent prices from going up higher and this can be a lot more than pennies now and in the future. Nobody can really predict and depends on growth of the new increasing demand.

Regarding the stance for helping out homeowners, Obama excels well over McCain.
There is no real chance that the banks will voluntarily go along with the writedowns that Public Law 110-289 covers with HOPE for Homeowners provision. Removing the exclusion which provides anti-modification for people's primary residence in title 11 Section 1322(b)(2).
The other issues regarding lower energy prices are debatable. The health care resolutions are better handled by Obama and his direction.

Surely this economist understands that markets don't react to whats happening right now as much as they do to what will happen in the future. If we start drilling now we may not see oil rolling in for 8-10 years but we will see the markets react to the future now.