Who is making money from the oil price rise?

[Andy]

I think almost everyone on earth is suffering from the rising price of oil but I was reading that this year is a bumper year for sales of luxury mega-yachts. Business is booming for builders of 50-100 meter mega yachts and there is a staff shortage for crew that specialize in silver service hospitality and such like. In Portsmouth, UK, they have actually created a training college just for the crew of the mega yachts.

So my guess is that the people making money on the back of rising oil prices are the buyers. I think the yachts cost about $1,000,000 per meter of length. And of course they run on diesel.

Hey, maybe your taxes paid for one of the bottles of champagne that they fill the pool with on the yacht. Just kidding, but you never know.

The record selling item on eBay is a mega yacht which went for around $48,000,000 Would you bid that much on an eBay item?

You would think that only a handful would be produced but apparently there are orders for 100's of them 

When I was a kid I dreamt of owning a Sun Seeker or Princess 32 but these are like dinghies now, they probably aren't allowed to berth in many ports. In Japan I may buy a fishing boat, at least I can catch my dinner. Pleasure boats are very rare here. Also, the fishermen are struggling to make a profit since they are locked into contracts for the price of fish that they sell to supermarkets, yet the fuel price keeps going up.

I wonder who will be the first billionaire to buy a space craft? Ah yes, Branson.

Sorry, I had to get this off my chest, the gap between rich and poor is so large now, it doesn't seem right.

[Queen Bee]

Sorry, I had to get this off my chest, the gap between rich and poor is so large now, it doesn't seem right.

I understand. I don't think it is right myself. I have read some surprising statistics regarding wealth distribution in the US. It has been said that the top 5% of the population holds 95% of the wealth. Whether or not these figures can be trusted eludes me, but the argument remains: the distribution of wealth in America alone is highly unequal.

...and even the poorest of Americans still "do better" than many low-class citizens of third world countries.

Most of the people I know are suffering from the gas price hikes... and it's only getting worse. My friends that work minimum or just above minimum wage suffer the most. Some of them spend nearly half-a-day's wages getting to and from work.

I have spoken to "well-off" family members and friends on the issue. They don't seem to care much because it doesn't affect them.

It is spoken about on the radio quite frequently.

Just yesterday Bush asked Congress to lift the ban on offshore drilling:
http://money.cnn.com/2008/06/18/news/economy/bush_drilling/index.htm?section=money_latest

I have heard the arguments on both sides, but I am not knowledgeable enough on the subject to hold a position. However, it will be interesting (maybe "amusing" is more appropriate in this context?) to see how Congress deals with the proposal.

[Menard]

One of the things in America that has been a staple of our society for decades is a middle-class; people and families simply making it, neither rich or scraping for pennies. That middle class is eroding away.

We see our government (a.k.a. the Bush Administration) bound and determined to leave no millionaire behind.

Other countries and ours' have legislated analog television out of existence (you will have to have an HDTV or converter box by February of 2009).

Perhaps television may seem trivial for an example to some, but it is the most blatant example of which way this country is heading.

TV sets that cost hundreds to thousands of dollars in order to get television? What about those who cannot afford it?

My home state of Kentucky is home to the second largest educational television network in the world. They were founded on a premise of providing educational television to anybody in the state. They have a network of repeaters that will reach more than 99% of the population; almost to an extent where you would have to live in a cave to not be able to receive a signal. Anybody in the state with any old television whether they can receive any other station or not will be able to receive their signal. On February of 2009, that will end. If you cannot afford an HDTV set, have a television that can use a converter, or be able to afford a converter and/or television that can use one, you will have no television.

The retailers are targeting more and more those who are well to do. No layaway plan; if you can't pay for it or can't get a credit card, we don't want your business. Some may argue that it is economics that is causing stores to do away with options for struggling families to be able to afford their stuff. Kmart, despite having taken a plunge like they did, is picking up business; does being one of the only retailers to offer layaway have anything to do with this?

On the other hand, Kroger is giving a 10% bonus for purchasing a shopper's card of $300 to $1200. Uh, sure, I'll be right out to buy one . Anybody else think that a $300 and up shopping card is targeted at someone trying to make ends meet?

I was on another forum replying to a thread started by yet another resident conservative there. He was complaining about a grocery store giving a discount for food stamp purchases; didn't seem to recall him complaining about a 10% bonus if he flipped out a wad of hundreds at the store.

Chains have pushed small businesses out right and left. These chains now require that people use the internet to apply for jobs. A lot of companies require the use of the internet to apply for jobs.

There is an equal opportunity employment act required for employers to follow (at least to file the paperwork on it) that is suppose to help against discrimination; whether that is along racial, ethnic, or class boundaries, among others. Hey, guess what? Poverty levels are, as they have always been, greater among racial and ethnic lines. Internet requirements for employment reinstates discrimination. It is harder for people in groups discriminated against to apply if they don't have access, and the companies cannot be held liable for discrimination if they are getting fewer applicants from these groups.

I am disappointed with my own state government for passing legislation to raise the minimum wage. No, it is not contrary. The minimum wage has not been raised for something like 12 years or more. Conservative want to blame the Clinton administration for this.

Okay. During the Clinton administration, average wages went up. Many chain stores increased their starting wages by as much as 50%. There was no need to raise the minimum wage as hardly anybody was paying it, and keeping it at its level was small business friendly, which I will explain in a moment.

How much have starting wages increased during the Bush administration? 0%.

The government, state and federal, want to up the minimum wage from $4.65 an hour to $7.20 an hour in steps over a few years.

Why is this a bad idea? Increasing minimum wage in a crippling economy only plays into corporate interests. In hard time like these with everything going up, and what you are making going down, small business is not going to be able to pay more. Our government has basically legislated many small businesses out of existence.

The distributing business for which I have built a website is having the most crippling year it has ever had. Of course, a primary reason for this is that his clients are having a crippling year. People aren't buying from them, so they can't buy from him.

I hate to say this, but I recommended targeting a more upscale clientele. His business largely deals with shops that deal with families. fewer families are traveling, and even fewer are buying if they do. My recommendation was to target those who can afford to buy. Of course, this would require a re-estimation of his inventory and actually publishing a catalog. Certainly there is no guarantee that this would work, but it seems to make sense to try to sell, more, to those who can afford to buy from you.


Just my rants; I'll stop here.

[Andy]

Thanks for your detailed input guys.

My curiosity was more about who is making the billions? My guess is that many of the mega yachts are being bought by companies to avoid tax. They could be a legitimate business expense since they can be used to entertain clients to discuss business and make deals.

I am now thinking to invest in stocks that rise with the oil price since last year they were predicting $100 a barrel for this year but it hit $140. Now they are predicting $200 so it seems like an almost no brainer that the price will go up more.

Medium-sized oil services companies may be the best bet. It just seems like a lot easier to buy some of these stocks than making money online. I just need to get up to speed with my charts, trend lines and stuff 

[TexasLady]

In other words, Andy, you just want to join the well-off who can afford luxury items, even if not in the class of mega yachts.  There is not a thing wrong with that, except that the poor are getting poorer (so who can afford the risk of stocks now-a-days?)   I am not poor, nor am I well-off.   I'm at the low end of that disappearing middle class and that's only because I am receiving some government assistance with meds, etc.   Based on my health, if I had to meet all those needs myself I'd definitely be POOR.   

It makes me ill that  the working poor are just that.   There are no quick answers for them; as Menard said the poverty levels have not changed in spite of the rapid drop in the economy.   Of course the welfare people are making it as well or better then the working poor:  no wonder the lines for that are  getting longer and longer.

Menard, you make so many good points, I won't even try to answer them.   I agree with you that our country is in terrible shape and getting worse, based on big brother and corporations.   I can't help wondering if Obama can really make any changes for the better?   I'm sure McCain won't.   I've never voted Democratic in my life but then, I've lived long enough to change.   If I just got my hair dyed professionally for the first time, guess I can change my vote for the first time!   

[Teflon]

I assume that sales of these run your car on water or cooking oil type information products will be enjoying an increase.

Surely it is only a matter of time before solar powered cars or rechargeable cars hit the streets but obviously they would be severely limited in terms of performance.

[Andy]

I assume that sales of these run your car on water or cooking oil type information products will be enjoying an increase.

There is a clickbank product about how to run your car on water. It's at the top of the list for it's category. The sales page is hilarious. They forgot about the law of conservation of energy I think since the car's battery is used to produce hydrogen and oxygen on demand. Then the "atomic" power of the hydrogen is released to the engine. Also, you get the impression that you will be buying a conversion kit but it must be an eBook showing what parts to buy from B&Q and Halfords etc.

At least cooking oil is proven to work. I heard your exhaust smells like a fish and chip shop though. Plus it's illegal.

[Teflon]

I hear rumours that quite a few taxi drivers use the cooking oil trick not heard anything about the smell though it does show how ridiculous things have become when people have to resort to adding substances other than petrol or diesel to their fuel tanks.

[Andy]

The private taxi drivers in the UK are the worst offenders for anything IMHO. I heard some stories that some use taxi driving as a cover for other much more lucrative business such as property landlords, petrol station owners and general tax dodging.

Ha ha, I had to get that off my chest, next time you are in a cab late at night you should ask yourself, why is this guy working so late at night driving a cab  There could be a very good reason that you never imagined  I am not talking about rape or anything like that, it is a front to seem like they are struggling to make money but these people are sometimes landlords with a big portfolio of rental property and international business interests where they need to drive a cab or work as a low paid employee to cover themselves.

So open your eyes folks...

More on this: taxi drivers love to talk, so get a conversation going and be on their side as regards problems with fuel price and the fact that we need to hustle a bit to get by and see what juicy info you can get  from these #&#£##%'ers

[Teflon]

Well apparently i have also heard that sometimes taxi drivers from the same family share the taxi i.e. its badge so one guy does his shift then the brother does a shift and so on so its pretty much always on the road ill bet theres a few rich taxi drivers these days.

[Menard]

The private taxi drivers in the UK are the worst offenders for anything IMHO. I heard some stories that some use taxi driving as a cover for other much more lucrative business such as property landlords, petrol station owners and general tax dodging.

Ha ha, I had to get that off my chest, next time you are in a cab late at night you should ask yourself, why is this guy working so late at night driving a cab  There could be a very good reason that you never imagined  I am not talking about rape or anything like that, it is a front to seem like they are struggling to make money but these people are sometimes landlords with a big portfolio of rental property and international business interests where they need to drive a cab or work as a low paid employee to cover themselves.

So open your eyes folks...

More on this: taxi drivers love to talk, so get a conversation going and be on their side as regards problems with fuel price and the fact that we need to hustle a bit to get by and see what juicy info you can get  from these #&#£##%'ers

Uhm...is there an incident involving a taxi driver you'd like to get off your chest, Andy?


In my area, it's the taxi companies that try to keep a monopoly on the taxi business. A second taxi company has finally come to Lexington, with some difficulty as getting licensed in a corrupt political system is not easy.

The company really puts it to the drivers. The drivers lease the cabs, essentially on a debtor agreement (the company fronts the lease and collects on it from the driver's earnings).

The taxi company, however, is going to profit even more from the drivers as all of the cabs run on propane, and have for years. Where are you going to be able to fill up a cab with propane? At the taxi company of course; at whatever rate they set. Of course, at what oil is selling by the barrel, I wonder if domestic propane is a pretty good bargain for running a vehicle?

[Andy]

Uhm...is there an incident involving a taxi driver you'd like to get off your chest, Andy?

Yeah I got dumped in the wrong place late at night and got inside information from my mate Raj, but he vanished, I think to Canada  Huh

Whatever, I am going to charter a super-yacht and yes it will have diesel engines and will be berthed in Porto-banus in southern Spain. What the heck, we only live once. All forum posters are welcome. Just bring a bottle of fine wine/champagne and a hot partner. Date to be arranged.

Last year I was in Thailand checking out the theory that Thais are very friendly which I can confirm that they are.

This year I am probably going to Australia to ride a harley davidson motorcycle along the coast road around the Brisbane area and meeting the Biker people with a lot of boozing and stuff. Plus I may bump into my professional poker-playing cousin who emigrated from the uk in those parts.

All the best to you people.

[hank freid inn]

I know a lot of people who complain about oil prices. In my opinion, people should hedge their oil exposure in the real world by owning oil stock! That way, when oil prices go up, they pay more at the pump, the their stock will most likely be worth more. On the other hand, if oil comes down, the stock will come down also, but their heating bills will also decrease.

______________________
hotel developer hank freid is the ceo and founder of the impulsive group.

[Andy]

people should hedge their oil exposure in the real world by owning oil stock!

I agree, but you need to invest wisely with good timing in the relevant stocks. Have you a strategy Hank?

Maybe look at a moving average curve and if you assume an upwards price trend then you can buy on a dip well below the moving average price. And, you could maybe get a feel for the best time of day and the best day of the week to buy.

Share your thoughts...