Read time: 5 minutes

The Price Of Oil Has Once Again Hit A New High

What's good for GM? Nothing, apparently Attytood It's getting to be an old headline, but today -- over $56 a barrel (yes, yes, we know, it was higher

What's good for GM? Nothing, apparently Attytood

It's getting to be an old headline, but today -- over $56 a barrel (yes, yes, we know, it was higher when adjusted for inflation in 1980...but, still). It's likely to get worse. It seems like people are finally getting their arms around the idea that OPEC has no extra oil to spare.

Remarkably, the American economy has not panicked over the somewhat alarming trends. Until recently, the stock market has slowly meandered higher, and the jobs numbers -- while nothing like the peak under Clinton in the late 1990s -- have been better than any time since the very start of the decade.

But that's all starting to change, as of Wednesday morning. General Motors announced its financial outlook for 2005, and the numbers were downright ugly. The giant automaker had once been expecting to break even in the first three months of the year, but now it will likely lose $1.50 a share. GM once thought it would earn $4-5 a share this year, now that's down to $1-2.

The stock (one of the 30 that make up the Dow) is getting hammered today, down a whopping 13 percent as we write this, and it's taking the Dow down South with it.

Why is this happening? Basically, it's because GM builds cars that run on oil.Attytood

It's getting to be an old headline, but today -- over $56 a barrel (yes, yes, we know, it was higher when adjusted for inflation in 1980...but, still). It's likely to get worse. It seems like people are finally getting their arms around the idea that OPEC has no extra oil to spare.

Remarkably, the American economy has not panicked over the somewhat alarming trends. Until recently, the stock market has slowly meandered higher, and the jobs numbers -- while nothing like the peak under Clinton in the late 1990s -- have been better than any time since the very start of the decade.

But that's all starting to change, as of Wednesday morning. General Motors announced its financial outlook for 2005, and the numbers were downright ugly. The giant automaker had once been expecting to break even in the first three months of the year, but now it will likely lose $1.50 a share. GM once thought it would earn $4-5 a share this year, now that's down to $1-2.

The stock (one of the 30 that make up the Dow) is getting hammered today, down a whopping 13 percent as we write this, and it's taking the Dow down South with it.

Why is this happening? Basically, it's because GM builds cars that run on oil.
The GM news release has a great piece of corporate speak, noting that one of the problems at the company is "a more car-based sales mix." In English: Good ol' all-American cars, bad; gas-guzzling SUVs good -- for GM, anyway.

The SUV segment lost 1.2 percentage points of U.S. market share over the last two months and large pickups were down about 2 percentage points, according to Edmunds.com, which tracks the industry. Fuel-efficient compact cars, on the other hand, gained 2.2 percentage points of market share in the same period.

That's great news for the environment and for global warming prevention. And, if Detriot had been more on the ball, it might have been OK news for GM. But it's not -- instead it's a disaster for the world's biggest automaker. Why? Because an astounding 80 percent of its profits come from SUVs and pick-up trucks. (Didn't this already happen in the 1970s?...it's like re-living a bad dream.)

This is just the beginning...sadly. How long will Washington -- and we're talking both Republicans and Democrats here -- continue to fiddle while Rome, i.e., the world oil-based economy, continues to burn like a Kuwaiti oil well circa 1991? The 2004 election would have been a great time to talk about a sensible strategy to wean America off fossil fuels to the greatest degree that's possible.

But that didn't happen. Today, it's GM paying the price.

But tomorrow, it's going to be our now-10-year-old son and 12-year-old daughter.

The GM news release has a great piece of corporate speak, noting that one of the problems at the company is "a more car-based sales mix." In English: Good ol' all-American cars, bad; gas-guzzling SUVs good -- for GM, anyway.

The SUV segment lost 1.2 percentage points of U.S. market share over the last two months and large pickups were down about 2 percentage points, according to Edmunds.com, which tracks the industry. Fuel-efficient compact cars, on the other hand, gained 2.2 percentage points of market share in the same period.

That's great news for the environment and for global warming prevention. And, if Detriot had been more on the ball, it might have been OK news for GM. But it's not -- instead it's a disaster for the world's biggest automaker. Why? Because an astounding 80 percent of its profits come from SUVs and pick-up trucks. (Didn't this already happen in the 1970s?...it's like re-living a bad dream.)

This is just the beginning...sadly. How long will Washington -- and we're talking both Republicans and Democrats here -- continue to fiddle while Rome, i.e., the world oil-based economy, continues to burn like a Kuwaiti oil well circa 1991? The 2004 election would have been a great time to talk about a sensible strategy to wean America off fossil fuels to the greatest degree that's possible.

But that didn't happen. Today, it's GM paying the price.

But tomorrow, it's going to be our now-10-year-old son and 12-year-old daughter.
UPDATE: OPEC fesses up -- we don't got no stinkin' oil. (Assist: Atrios)

 

Coalition Of The Bribed, Bullied And Politically Suicidal

 ThatColoredFellasweblog

 

After the firestorm of indignation from the Right over the inconsistent claims of a freed Italian journalist hostage suggesting she may have been targeted by Americans for assassination, Italy’s abrupt decision to withdraw it’s troops from Iraq starting in September 2005, should bring relative silence to the CEC.

 

 Not even waiting for the promised whitewash full and thorough Pentagon investigation of the incident is a telling sign of just how much opposition to the Iraq War existed among our third largest ally.

 

 However, those on the Right who undoubtedly

UPDATE: OPEC fesses up -- we don't got no stinkin' oil. (Assist: Atrios)

Can you help us out?

For 16 years we have been exposing Washington lies and untangling media deceit. We work 7 days a week, 16 hours a day for our labor of love, but with rising hosting and associated costs, we need your help! Could you donate $20 for 2020? Please consider a one time or recurring donation of whatever amount you can spare. It will be greatly appreciated and help us continue our mission of exposing the real FAKE NEWS!

More C&L Coverage

Comments

We welcome relevant, respectful comments. Any comments that are sexist or in any other way deemed hateful by our staff will be deleted and constitute grounds for a ban from posting on the site. Please refer to our Terms of Service (revised 3/17/2016) for information on our posting policy.