If you review the graph at the bottom of this article you will see that as the price of oil goes so goes your investments. My solution is to stabilize the stock market and global economies by having the U.S. set the price of oil at $45 per barrel. At the current price of plus or minus $30 per barrel, oil companies are losing money by pumping oil. In Ohio, it costs approximately $900,000 to drill a 4800 foot well that produces both oil and natural gas. The bankers are calling in the loans extended to the oil drillers and of course the oil drillers can’t pay so they will go belly up. The wells will not be maintained and the weak wells with little production will have to be shut in (sealed off) by the state as they are abandoned or else it will cause pollution. The taxpayer will pay that shut-in expense and the unpaid financial loans will bring down the financial institutions’ profit. All will cause greater economic turmoil and our stock market will fall further if oil pricing isn’t stabilized. Why not ask the Saudi’s to stabilize oil? They only produce 1/9th of the world’s oil so they can’t do it alone. The United States leads in oil production and we must lead the way. Consider the below chart showing oil production by country. Even though some of the 13 Nation OPEC countries along with Russia are talking about not producing more oil (premised on other large producers such as Iran, Iraq joining), the Unites States needs to be a part of such an agreement as we are the number one oil producer right now.
There is no other choice. No one can wait until we enter a bear market which is where the stock market has declined by 20%. If you look at the stock markets in the world they have declined more than ours. They will follow our lead so let’s start the dialogue to set the price of oil now. Look, I am just one small person in the world working away while trying to reach out and make a difference. If this idea can catch hold, and start a dialog to make a change; isn’t that what the internet is all about? So, feel free to comment, share, think, and pass it along to people who can make a change.
Why am I, a personal injury attorney, posting on this idea? I have been investing in the market since I was nine years old as I always found it interesting to study. I was profiled in a Money Magazine article about proficiency in picking stocks on September 10, 1984. Another quote about me in IBD was “Other kids were out fishing, she I was picking stocks.”
So stock picking is not just tough now it is impossible for anyone because a bad market will bring down a good stock. I care about the people who work for me and the average American who is seeing their hard earned investments drop precipitously. A down stock market hurts everyone and now is the time to change it by simply setting the price of oil at $45 per barrel. We thought the price of oil dropping from $150 per barrel was good for us but it has dropped so low now that the $20 you saved at the pump just cost you a $20,000 drop in your account. You can see the worldwide decline in stock markets as of today in this chart.
Share this article and start the dialog to save your investments.
Here is the graph of the price of oil over the last 3 months to the stock market (DJIA) over the last 1 month current as of today: (Where oil leads the market goes? I think so and more importantly that we can stop a future market drop by setting the price of oil today at $45 per barrel)