About the only kids who'll be able to cruise are the Amish kids going through Rumspringe.
When I was a teen, they had the best/sweetest rides around. Bunch would get together and buy one and start fixing it up, storing it during the week at a local garage. When they joined the church, would sell to the next batch, who continued making mods/upgrades. Only saw them on Friday or Saturday nights cruising around our small town. And yeah, they had some green amongst them.
The impact of the gas price on ALL facets of transportation and the economy at large is staggering.
I just had my "toy" car (weekend driver, a 1972 Dodge Coronet Wagon) towed back home this afternoon when the ignition quit. Only five miles from home, so the Auto Club membership covered it which was nice.
But the far-from-carefree-looking tow truck driver shared with me his daily/monthly fuel costs to run ONE tow truck (flatbed) with diesel:
$350-$400+ per DAY.
$12000-$13000 per MONTH on average.
Apparently his towing company had called a meeting this morning to try and figure out how they will continue to stay in business. And they're AAA subsidized / supported / endorsed.
Where does it stop????
Things don't deliver themselves without a whole lot of new expense....it seems like we're still on borrowed time with the prices of most things staying as relatively stable as they are (Happy Meal, Walmart Clothes, etc etc) but I don't see how it can last much longer.
Wow, this article brings back memories of a small town I used to live in as an adult - I remember the kids in the grocery store parking lot on weekend nights, driving around in circles. If you're not from an area where they "cruise" it's hard to explain it in a rational way to others. Could this be the end of an era?
Homedad,
I cruised in a hand me down red 55 T-Bird. Damn thing ate batteries. Pop sold it in 64 for $1,700. Too bad, I loved that car.
Interesting factoid. I see many drivers in Dallas with their windows down. Air conditioning being sacrificed for MPG. And in TEXAS!!!
My son traded cars with me a few months ago. I gave him an 87 Porsche 928 and I got his 99 Jeep. Neither principal drivers but he wanted a weekend toy and I needed cubes for the ranch. Jeep has no locking for the fuel filler. Yep, you guessed it. The syphon hose crews have returned in force! Lost about 10 gal. 3 weeks ago.
When I lived in San Francisco in the '80s, scooters were big with the young punk rockers and mods and skateboard punks. Sure, gas was cheap, but parking and insurance wasn't, and usually you weren't driving more than 3 miles anyway. They'd buy old Vespas for nothing and fix them up. 70-80 mph.
I can see scooters coming back for teens, especially in good-weather states like California. They just have to work on the "cool" factor a little, but scooters have been cool in the past.
But to add more info here, I'm in Southern California. Diesel here is peaking well over 5 bucks....not that it makes a huge difference in the math, but it might be a LITTLE less than 70 gallons. Maybe its 65 gallons.
But this driver stays driving all day. AAA keeps the jobs coming in. And I think they drive this particular truck more than 10 hours, they are a AAA facility so they need to be on-call 24/7. And SoCal has a lot of people calling in, especially when the weather heats up and cars break down more.
This particular driver had already driven a flatbed run from Orange County to San Diego and back that morning, 100 miles each way. So there's 200 before he even has lunch. And that's just on his shift. I bet those trucks can see 500-700 miles a day, easy. And you only get 10 miles per gallon with that rig (He told me 9) when you're on the highway. That drops significantly in-town, and around here there's a lot of hills to be powering up with a heavy load on the back. Them rigs is thirsty.
I believe the guy.
Of course, thinking about this, I would hope that all those AAA jobs coming in pay a combined good price to the towing co. -- though I'm sure AAA has pre-negotiated a lower-than-the-average-joe-pays per-tow price with 'em. So profit is probably squeezed. Raise that gas price and ouch.
All I know is that the look in the Guy's face did not communicate that he was doing any exaggerating.
they are a AAA facility so they need to be on-call 24/7.
I read recently that AAA is rescuing a lot of people running out of gas lately.
My first thought is people are stalling on filling their cars. My next thought is maybe siphoning is occuring more often. Would I notice right away if someone siphoned my gas? Probably not.
It's mostly hard to explain in a rational way since it never was rational and doesn't even have a toehold on silly anymore. The cruise in our area depended on where you lived - there were at least three separate cruise areas when I was a teen. I was closest to the downtown cruise, which was 5th Street to J Street to 15th Street to L Street to 5th Street. Basically a loop to show off and meet friends. Thinking back on it, it wasn't nearly as good as groping your date in a theater, but then teens are relatively unimaginative. They only think otherwise.
I noticed that CAT is getting out of the diesel truck market. I don't know if it is EPA or other factors. They used to make a great 2 cycle but EPA killed that market.
FED EX needs to take the express out of their name. I noticed also that their big highway rigs never exceed 60 to 65 mph. Smart move, actually.
Hey, nobody's siphoning my gas - my car is garaged in a gated alley. It would take much more effort to get at it than any of the car in my street or adjoining driveways. Besides, they now drill the tanks and take every drop.
Police officers who keep watch on weekend cruising zones say fewer youths are spending their time driving around in circles, with more of them siphoning gas from cars in parking lots, malls or movie theaters.
If CAT made a great two-cycle it was many years ago or not meant for on-road use. Detroit Diesel stopped their two-cycle production ages ago, though there are still plenty around.
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This is the third European bank to warn THE SKY IS FALLING in the last week.
Fortis is a large bank and insurer in the Netherlands and Belgium.
It took over ABN Amro last year, together with RBS and another bank. Last Thursday, its share lost 17% because Fortis attracted foreign capital.
SeattleSun
American 'meltdown' reason for money injection Fortis.
28th of June, 9:10 am Europe
BRUSSELS/AMSTERDAM - Fortis expects a complete collapse of the US financial markets within a few days to weeks. That explains, according to Fortis, the series of interventions of last Thursday to retrieve 8 billion. "We have been saved just in time. The situation in the US is much worse than we thought", says Fortis chairman Maurice Lippens. Fortis expects bankruptcies amongst 6000 American banks which have a small coverage currently. But also Citigroup, General Motors, there is starting a complete meltdown in the US"
Hopefully this kind of concern lasts long enough to get real backing for alternative energy. We desperately need it for the environment and we really really need it for national security. Just ask the old CIA Director.
Brazen youth on a cell-phone in Borders bookstore on Saturday night: "Dude, you drive, I don't have any gas left"...I don't think money managers, who are quite affluent, really understand the sea-change in behavior that has begun.
Ross writes:
I noticed that CAT is getting out of the diesel truck market. I don't know if it is EPA or other factors. They used to make a great 2 cycle but EPA killed that market.
Ross | 06.28.08 - 10:09 pm | #
The truck OEMs have decided the biz is so good they want to build their own engines so CAT is focusing engine development toward their own product instead - the decision on the part of the OEs was made a number of years ago in the boom & well underway now. Not certain when their SOP makes it no turn back but it isn't far off.
Am I the only one or did any of you go through your 'cruising years' during the 70s oil crunch? I graduated from HS in '75 just to give you a time stamp.
Our cruising was severely limited due to gas lines & price hikes... we did just fine. I am certain today's kids will do just as well...
There is an awful lot a guy-n-gal can do in a parked car. Believe me.
American teenagers are out cruising more than ever... it's just that their vehicles have changed. Now they do it in 130,000 pound M1 Abrams tanks and 8,000 pound up-armored Humvees.
CR - It seems strange for 3 major Euro banks to all be dissing the financial markets as hard as they are right now. Fortis is claiming that a catastrophe is coming in days. Whats up?
"FED EX needs to take the express out of their name. I noticed also that their big highway rigs never exceed 60 to 65 mph. Smart move, actually."
Ross | 06.28.08 - 10:09 pm | #
Ross,
Corp speed limit is 65. A few are set faster(71). Controlled by,you got it,the ECM.
I filled the Cobra and cranked out 100 miles or so today. That will make up for a few teens(8 gal).
"Got any take on Cummins?
The build in heavy equipment looks like another 5 year or so, no brainer."
Ross | 06.28.08 - 11:03 pm | #
I have some Common Rail motors. What do you want to know?
I personally will not own a diesel until we get a couple of good years after 2010 and the particle traps...Yes,I already have seen/worked on this upcoming junk.
Kids still crusing here in Podunk only now thay are using 4 weelers, Nice thing about Podunk is you can do that and not get a ticket. A lot of adults are driving them to work and even saw a couple of golf carts. I love rural America. Get 'R' Done.
I have a lot of respect for Cat. It was one of the first companies I started to follow as an analyst in the late 60's. Peoria wasn't a great visit in January, though.
Cobradriver writes:
"Got any take on Cummins?
The build in heavy equipment looks like another 5 year or so, no brainer."
Ross | 06.28.08 - 11:03 pm | #
I have some Common Rail motors. What do you want to know?
I personally will not own a diesel until we get a couple of good years after 2010 and the particle traps...Yes,I already have seen/worked on this upcoming junk.
Chris
Cobradriver | 06.28.08 - 11:13 pm | #
I'm looking at parts for the next gen particle traps now - but ag related product. It's coming along - hold your horses.
I'm looking at parts for the next gen particle traps now - but ag related product. It's coming along - hold your horses.
dryfly | 06.28.08 - 11:25 pm | #
Come on. You know the rule. You NEVER EVER buy the first year of production. I like to see trucks after the third year. Can you say not to many bugs??
"Cobra, you get 12.5 mpg? I only get 9 in the twin turbo. Thinking of trading down for fuel economy!!! NOT!"
Ross | 06.28.08 - 11:29 pm | #
I get about 15-16 at 80mph. 3.73's with a overdrive trans. Around town. God, I hate to think. Maybe 8? I don't know honestly. If the debit card works that means I have gas,right?
I'm looking at parts for the next gen particle traps now - but ag related product. It's coming along - hold your horses.
My 4-cyl Ford farm tractor (which turned 50 this year) burns whatever the red-dye stuff is they sell around here. Considering how old it is, I wonder if its a candidate for the used cooking oil scheme (not that I want to screw up the inj-pump just to find out).
I'm guessing there was much more sulfur in the diesel back around 1958.
Come on. You know the rule. You NEVER EVER buy the first year of production. I like to see trucks after the third year. Can you say not to many bugs??
Chris
Cobradriver | 06.28.08 - 11:30 pm | #
I hear ya.
To be honest - it might take a lot longer... not because the designs aren't okay - but the fuel supply will remain 'dirty' far longer than folks expect. As I am sure you are aware - these things need super clean fuel & with the shortages & tight margins there is likely to be some 'cheating'.
I expect it will be added 'job security' for you - like you need more of that, right?
"I wonder if its a candidate for the used cooking oil scheme (not that I want to screw up the inj-pump just to find out).
I'm guessing there was much more sulfur in the diesel back around 1958."
RayOnTheFarm | 06.28.08 - 11:36 pm |
Ray,
I am pretty sure the red stuff is still standard sulfur levels. The problem running veggie oil straight is you don't want it setting in the system and jelling. Big mess. A friend is using it but he runs 45 minutes to work on a dual fuel system. 5-10 minutes to warm on diesel. Switch to veggie oil for 30. Back to diesel for the last few miles to purge system...For a tractor I would just stick with fuel...
"I expect it will be added 'job security' for you - like you need more of that, right?"
dryfly | 06.28.08 - 11:36 pm | #
I will say after the great garbage purge when the initial ULSD change took place,filter changes have dropped to only on p.m.'s. I don't know what they used for lubricant but boy,it sure cleaned everything out. Hopefully by the time 2010 rolls around the fuel will have done its job.
My Grandad, born in 1899 told me stories about the difference in the quality of fuels in the 1920's. The ethyl additive was added at the pump by ounces. It was also red. He could always tell the spendthrifts that over 'ethyled' their motors by the amount of red dye around their cylinder heads. VW recommended in the 60's that after 100'000 miles that you put a gallon of diesel per tank (10 gal) so you woudn't blow the heads off.
Fuel quality varies by refinery. In the 60's, Texaco had the most sulpherous gas in the country from their El Paso refinery. Sulpher is not good unless you use it as fertilizer.
"In a specifically sexual context, the term "cruising" originally emerged as an argot "code word" in gay slang, by which those "in the know" would understand the speaker's unstated sexual intent, whereas most heterosexuals, on hearing the same word in the same context, would normally misread the speaker's intended meaning in the word's more common (and presumably less threatening) nonsexual sense. This served (and in some contexts, still serves) as a protective sociolinguistic mechanism for gay men to recognize not only each other, but those who may wish to do them harm in broader societies noted for their homophobia."
THE 'TERRAISTS', THEY'VE TAKEN OUR FREEDOMS!!!!!!!!!
Seriously though: has anyone seen Dick Cheney? Where's our #1 attack dawg at with oil out of control? At least he parked his bounty in inflation-protected securities before taking office, a hint of things to come no doubt....
Ben Bernanke, the chairman of the United States Federal Reserve Bank, faces a general investigation by the International Monetary Fund. Just one more example of the Fed losing its power.
Amazed that in all the discussions in MSM, congress, etc., I have yet to see a single mention of bringing back the 55 mph speed limit. Worked in '73, don't see why it wouldn't now.
With people driving less often, more slowly, and on less crowded roads, one would think that an auto insurance pure play would be a smart buy.
But I suppose what they're gaining on fewer and less costly payouts they're losing on the reduced income from their floats due to capital market conditions.
FFDIC writes:
McCains Defaulted On Home Taxes in La Jolla, CA For Last Four Years, Newsweek Reports... Breaking News and Opinion on The Huffington Post 20...x_n_109785.html
FFDIC | 06.29.08 - 12:42 am | #
How does somebody do something that stupid? I mean isn't it one of the first things you do when running for Prez? Pay off the mistress & make sure all the bills are paid?
We'll know if its 'news' if its all over the Sunday AM talk shows. If not, maybe a 'nuthinburger'... I mean everyone does it, don't you?
IIRC John and Cindy McCain have always been financially independent of another; so it's not really his house. Also, most of Cindy's wealth is controlled by a trust, so it's likely that there was some type of administrative incompetency/mixup. Some of the common mistakes that absentee homeowners make are (1) thinking that property taxed is escrowed or (2) not having the county mail to the correct address.
No big deal, they'll have an administrator take the fall.
Husband and wife "financially independent" from each other? Very un-zen says the old master. A husband busy with his career, and in particular one like that of McCain, needs to delegate the managing of daily money stuff, not the big decisions, to somebody. And if he has married a wife that is not up to the task...very un-zen says the old master. I find the mere thought of "financial independence" amusing...unless the wife is drop dead ugly and dumb as a monkey.
Simian...the US, where I presently live, is bankrupt. No news there. As is the UK also. The only things of any value you guys over here have for the rest of the world are 1) beautiful nature (the great outdoors), 2) a big mean lethal army and 3) Hollywood (films, TV, record labels). That´s about it. Oh, and truck loads of debt and low IQ consumers galore.
iPod? What´s that? A simple processor, an .MP3 codec and a hard-drive. All manufactured in Taiwan or wherever. A very low tech device, that I admit to owning, but which will be replaced by your average cell phone, unless it already has. Oh, I forgot to mention, you also have a nice porn industry here...but keep it too low key You should be more open and proud about it. Best in the world
"Officials with the International Monetary Fund (IMF) have informed Bernanke about a plan that would have been unheard-of in the past: a general examination of the US financial system. The IMF's board of directors has ruled that a so-called Financial Sector Assessment Program (FSAP) is to be carried out in the United States. It is nothing less than an X-ray of the entire US financial system."
The US also has the most lethal investment bankers on the planet...with the ability to blow up a balance sheet anywhere in the world and destroy one's credit rating...all the while taking a nice cut off the top.
Thanks for the head's up AlphaBeta. From the article:
For seven years, US President George W. Bush refused to allow the IMF to conduct its assessment. Even now, he has only given the IMF board his consent under one important condition. The review can begin in Bush's last year in office, but it may not be completed until he has left the White House.
AlphaBeta
The IMF better bring its bongwater. It is in for one big fucking surprise unless they only talk to G.H. Sheila Bair and whoever said it is all contained.
Hey Kona Gold, she's not wearing a helmet. You can't imagine how much hitting a bug at fifty is going to hurt. Hell, rain with no helmet, feels like bullets. Also while gassing up, I saw another sign of the apocalypse. The guy in the Hummer in front of me only bought five gallons, on a credit card. $4.39/gal.
The end of teenage driving is the beginning of bigger societal shifts as well - "teenagerdom" itself being a product of the automobile age. There is no "official" teenager stage of life. It is a marketing concept - one can see another one developing before our eyes right now, "tweendom."
As teenage mobility and prosperity declines, a number of companies (and lots of really stupid advertising) will go with them.
It won't take too long. Today's 10 year olds will never know the cruising car culture.
twenty bucks to fill up the gas tank for the lawn mower yesterday.
Seems like motorcycles are back in volumes not seen in 30 years. Remains to be seen what these short sighted folks are going to do come december.
Then again, I remember a buck fifty a gallon in 78 when I was making 1/10th what I make now. An cars got 30 percent less milage. Once you got used to it, you lived with it.
I also remember the spike in all products made of fuel. Debating order new sails for the boat and ski boots before raw prices skyrocket.
Finally, I remember Congress demanding something be done. Been 30 years and they have not done a single friggin thing. Do not expect a change in the short term folks. We are on our own...
Cobradriver, are you driving a vintage Shelby Cobra, or the Mustang variant? The Shelby's been a lust object of mine since Carroll Shelby brought it out back in the '60s. 427 or 389?
The McCain back tax thing will be a minor, temporary embarrassment, especially since they've already paid most of the balance. It doesn't look good, but in the grand scheme of the campaign it's nowhere near the Wright brouhaha. That's not to say the Dems won't crow about it, but needless to say Fox will bury it, or more likely not mention it at all.
Those arguing that the sustained rise/high oil prices are inflation spiraling are barking up the wrong tree.
This is a longer term (2-5 years) deflationary force because incomes are not rising to keep up with these prices.
Where is the inflationary spiral? Nothing, absolutely nothing like an inflationary spiral has occurred even with oil at $140 and short term interest rates at 2%.
Wake me up when anything other than oil and some food prices spiral. Wake me up when housing, autos, durable goods, and high tech electronics see double digit price increases.
Besides, they now drill the tanks and take every drop.
Of course they drill the tank. Hasn't anyone around here tried to siphon gas for the lawnmower in the past three decades? In the 1970s they started putting baffles in the fill pipe and tank that make inserting a siphon hose next to impossible.
Leftys Liquors: Also while gassing up, I saw another sign of the apocalypse. The guy in the Hummer in front of me only bought five gallons, on a credit card. $4.39/gal.
That's just about enough to get to the next gas station. Sounds like the Just-In-Time business model.
AlphaBeta:
Don't get your knickers in a knot, Dood.
FRB will refuse to cooperate... because Al Qaeda may be watching CSPAN, and then the terrists would win.
In other news, Cindy McVain is quoted saying, "Paying your bills on time is for the little people."
On the local scene: Loose change must be getting a bit tight. In years past, the nighttime scene begins sounding like Baghdad about six weeks before the 4th of July. This year, with the 4th rapidly approaching, it barely sounds like Beirut. (And the almost constant blare of 150 decibel ghettoblastermoblies cruising through is down to a trickle.)
The real men on harley's with holes in the tailpipe still have enough money to gun the motor enough at 3AM to wake up the baby.
I'm happy they still have extra cash.
Troy,
My diesel pickup gets 10 mpg or so going uphill, downhill or on the flat.
Of Course, it has a 2700 lb camper and is pulling a two horse slant most of the time. Even without the horses the mpg doesn't change much. That $200 a barrel oil is going to change our use of that truck a lot. It will be parked and we will ride the horses locally.
Our volunteer work(?) will come to an end also.
"Bring It On!" "Mission Accomplished!"
This is a longer term (2-5 years) deflationary force because incomes are not rising to keep up with these prices.
Another victim of FED propaganda?
Wage spiral is a very convenient excuse for them to ignore inflation; in reality wages have nothing to do with inflation, it's a money supply phenomenon.
If everyone goes poor in a country with so many homeowners, you would expect home price to collapse down to 10,000$. That doesn't mean a huge deflation has occurred, a pound of apples can go to 20$ in the same time.
If wages go down in real terms, it changes the composition of a typical consumer basket, and it forces many consumers to sell some of their possessions, distorting relative prices of various goods to the extreme. Some prices go hugely up, some tank.
This gives FED plenty of items to choose to point to deflation, while prices of many essentials sky-rocket. Very easy to hide your money printing in such environment. That's all there is to wage-price spiral talk.
Total $38.70 or about $4.70 more than in 1963. The good old days seem better when you forget inflation.
jim | 06.29.08 - 6:56 am | #
Fed minimum wage was $1.15 in the sumer of 1963 - bumped to $1.25 later that year (sept).
So that date was really about between 4.3 and 4 hrs of teenage work in 1963...
Today it is at $5.85 and will be bumped to $6.55 in a few weeks...
That $38.70 becomes 6.6 and 5.9 hrs... and my guess is fewer teens earn min wage than ever before (I have raised a total of three - only one still in teen years - none have ever worked for as little as minimum wage, most have earned $8-$10/hr as teens & we live in low cost part of the world - my guess is coastal teens make quite a bit more though their expenses are higher).
Anyway - even if the knuckleheads have to work an extra hour or two before going out on the big date - its two less hours they can get in trouble... plus wears them out - never a terrible thing. There is always a silver lining somewhere
most have earned $8-$10/hr as teens & we live in low cost part of the world - my guess is coastal teens make quite a bit more though their expenses are higher
Hmmm. $7/hr. this summer, camp counselor. First job. $8-$10? That would be surprising.
Hmmm. $7/hr. this summer, camp counselor. First job. $8-$10? That would be surprising.
Outsider | 06.29.08 - 10:42 am | #
My kids have all been lifeguards at a community pool & rec - starting wage $8 & almost all the hours they want. There are even better paying jobs so that sort of forms the floor. The other jobs are generally more difficult & allow less time flexibility - like ag & tourism related jobs.
Now granted - a lot of these jobs are seasonal but that isn't a big issue. We are one of those towns were most kids still do sports or music or theater in the school year so most don't work a lot during then. Its sort of a blast into the past kinda place. The wages & prices are very much 'now' however.
Back in the 60s I had a black primered 55 Chevy with a built 327. All the guys I hung with would cruise through the main street of our dinky little town until we got to the town limit sign. Then one by one we entered hyperspace until we got to the next town. I had a heads up display for a speedometer. As I passed 115 mph, the vacuum windshield wipers would gradually move farther up the glass. Such adventures came at a cost though. Friday nights saw an endless gas line at the local sawmill, and the local junkyard quickly ran out of 'bondo' cars to be resold to other wannabe racers. Such was life where even adults didn't have jobs.
Regarding that IMF audit..............Anything too big to be swept under the carpet is automatically counted as furniture works all over the bizness world.
This old high school life guard (1960) made 65 cents an hour. Back then the minimum wage did not apply to municipalities. You only paid minimum wage if you were engaged in interstate commerce.
But working 65 hours a week I'd net 40 bucks. Did I say work!!! Oh the babes.
Interesting that the S.S. administration has me down for paying in $12.37 that year.
Gas mileage? I had a 73 Caddy El Dorado from 74 to 77. 540 cub.in. 375 hp. weight=small tank.Had knobs and buttons I never did figure out what they did. Maybe 6mpg town,maybe 8mpg highway. I still remember having a windowwasher motor going out and they wanted $175 for a new one(Guy at local gas station found me one for 6 bucks).4 new tires would set you back 5-6 hundred. Many many road trips.Great car! Was married a week to 2nd(now ex) wife who borrowed it one night and came in about 3AM and said "I totaled your car".I loved her so much that all I said was "Are you OK?".Good Times! Good Times!
But the far-from-carefree-looking tow truck driver shared with me his daily/monthly fuel costs to run ONE tow truck (flatbed) with diesel:
$350-$400+ per DAY.
$12000-$13000 per MONTH on average.
Apparently his towing company had called a meeting this morning to try and figure out how they will continue to stay in business. And they're AAA subsidized / supported / endorsed.
Ouch!
FYI, TOW trucks run on two 12 hour shifts per day. They tend to be moving 20+ hours per day too! So to Troy, it does add up! I was towed a few months back and the economics of towing was really interesting.
That other Tow company is in trouble with AAA. Why? They cannot afford to drive around the flatbad's that used to carry suburbans. (The smaller Izuzu ones max out at an F150.) They're parking more trucks and risking the ire of AAA (longer response times). So far all the trucks parked are the larger ones that need work. (Why work on something that costs too much in diesel.)
I'm expecting AAA is going to have to do fast renegotiation.
There is a big difference between some analyst from Barclays or saying that the financial system is going tits up and the boss of Fortis saying it. You expect him to have access to a lot more inside information. Though saying that 6000 american banks are going bankrupt is a number which i find way to high. I believe i read somewhere that there are only 600+ FDIC insured banks
well anonymous, as previously mentioned 60% of most banks assets are in RE. if RE tanks 30% thats 18% of banks assets that go poof. so whats the standard leverage among the banks, 1:10?
see, 30% decrease is enough to wipeout the equity of all banks
I find the fact that some segment of the American population may have to stop purposely wasting fossil fuels to be the cause of this much consternation is hilarious.
First? Wheeeee.
They have the blues
YouTube - Howlin' Wolf - How Many More Years
I have curtailed my driving in 2004, when oil went from $1.50 to $2.00.
Talk about hardship.
Totally unAmerican I tell you. James Dean is rotating in his grave. Robert Mitchum is burning his own moonshine.
Price alert: Saturday night date in 1963.
$1 = 3.3 gallons of gas
$1.70 Admission for two to movies
$2.30 Split a meatball sandwich, large fries and 2 cokes.
A five dollar date. Thanks Mom.
Ross...good one! So true. The good times ended when oil went passed $100/barrel.
About the only kids who'll be able to cruise are the Amish kids going through Rumspringe.
When I was a teen, they had the best/sweetest rides around. Bunch would get together and buy one and start fixing it up, storing it during the week at a local garage. When they joined the church, would sell to the next batch, who continued making mods/upgrades. Only saw them on Friday or Saturday nights cruising around our small town. And yeah, they had some green amongst them.
And there I was in a beat up Chevy Shitette.
The impact of the gas price on ALL facets of transportation and the economy at large is staggering.
I just had my "toy" car (weekend driver, a 1972 Dodge Coronet Wagon) towed back home this afternoon when the ignition quit. Only five miles from home, so the Auto Club membership covered it which was nice.
But the far-from-carefree-looking tow truck driver shared with me his daily/monthly fuel costs to run ONE tow truck (flatbed) with diesel:
$350-$400+ per DAY.
$12000-$13000 per MONTH on average.
Apparently his towing company had called a meeting this morning to try and figure out how they will continue to stay in business. And they're AAA subsidized / supported / endorsed.
Where does it stop????
Things don't deliver themselves without a whole lot of new expense....it seems like we're still on borrowed time with the prices of most things staying as relatively stable as they are (Happy Meal, Walmart Clothes, etc etc) but I don't see how it can last much longer.
w t f .
$350 per day
That's 70 gallons of diesel. 10MPG is 700 miles. 10 hrs per day of driving is an average of 70mph nonstop.
Something doesn't add up there.
Wow, this article brings back memories of a small town I used to live in as an adult - I remember the kids in the grocery store parking lot on weekend nights, driving around in circles. If you're not from an area where they "cruise" it's hard to explain it in a rational way to others. Could this be the end of an era?
Homedad,
I cruised in a hand me down red 55 T-Bird. Damn thing ate batteries. Pop sold it in 64 for $1,700. Too bad, I loved that car.
Interesting factoid. I see many drivers in Dallas with their windows down. Air conditioning being sacrificed for MPG. And in TEXAS!!!
My son traded cars with me a few months ago. I gave him an 87 Porsche 928 and I got his 99 Jeep. Neither principal drivers but he wanted a weekend toy and I needed cubes for the ranch. Jeep has no locking for the fuel filler. Yep, you guessed it. The syphon hose crews have returned in force! Lost about 10 gal. 3 weeks ago.
When I lived in San Francisco in the '80s, scooters were big with the young punk rockers and mods and skateboard punks. Sure, gas was cheap, but parking and insurance wasn't, and usually you weren't driving more than 3 miles anyway. They'd buy old Vespas for nothing and fix them up. 70-80 mph.
I can see scooters coming back for teens, especially in good-weather states like California. They just have to work on the "cool" factor a little, but scooters have been cool in the past.
Hey, I see your point.
But to add more info here, I'm in Southern California. Diesel here is peaking well over 5 bucks....not that it makes a huge difference in the math, but it might be a LITTLE less than 70 gallons. Maybe its 65 gallons.
But this driver stays driving all day. AAA keeps the jobs coming in. And I think they drive this particular truck more than 10 hours, they are a AAA facility so they need to be on-call 24/7. And SoCal has a lot of people calling in, especially when the weather heats up and cars break down more.
This particular driver had already driven a flatbed run from Orange County to San Diego and back that morning, 100 miles each way. So there's 200 before he even has lunch. And that's just on his shift. I bet those trucks can see 500-700 miles a day, easy. And you only get 10 miles per gallon with that rig (He told me 9) when you're on the highway. That drops significantly in-town, and around here there's a lot of hills to be powering up with a heavy load on the back. Them rigs is thirsty.
I believe the guy.
Of course, thinking about this, I would hope that all those AAA jobs coming in pay a combined good price to the towing co. -- though I'm sure AAA has pre-negotiated a lower-than-the-average-joe-pays per-tow price with 'em. So profit is probably squeezed. Raise that gas price and ouch.
All I know is that the look in the Guy's face did not communicate that he was doing any exaggerating.
they are a AAA facility so they need to be on-call 24/7.
I read recently that AAA is rescuing a lot of people running out of gas lately.
My first thought is people are stalling on filling their cars. My next thought is maybe siphoning is occuring more often. Would I notice right away if someone siphoned my gas? Probably not.
It's mostly hard to explain in a rational way since it never was rational and doesn't even have a toehold on silly anymore. The cruise in our area depended on where you lived - there were at least three separate cruise areas when I was a teen. I was closest to the downtown cruise, which was 5th Street to J Street to 15th Street to L Street to 5th Street. Basically a loop to show off and meet friends. Thinking back on it, it wasn't nearly as good as groping your date in a theater, but then teens are relatively unimaginative. They only think otherwise.
I noticed that CAT is getting out of the diesel truck market. I don't know if it is EPA or other factors. They used to make a great 2 cycle but EPA killed that market.
FED EX needs to take the express out of their name. I noticed also that their big highway rigs never exceed 60 to 65 mph. Smart move, actually.
Hey, nobody's siphoning my gas - my car is garaged in a gated alley. It would take much more effort to get at it than any of the car in my street or adjoining driveways. Besides, they now drill the tanks and take every drop.
Police officers who keep watch on weekend cruising zones say fewer youths are spending their time driving around in circles, with more of them siphoning gas from cars in parking lots, malls or movie theaters.
Stall Street - Good point! Maybe cruising does serve some useful social functions - like keeping kids out of trouble.
If CAT made a great two-cycle it was many years ago or not meant for on-road use. Detroit Diesel stopped their two-cycle production ages ago, though there are still plenty around.
.
.
.
This is the third European bank to warn THE SKY IS FALLING in the last week.
Fortis is a large bank and insurer in the Netherlands and Belgium.
It took over ABN Amro last year, together with RBS and another bank. Last Thursday, its share lost 17% because Fortis attracted foreign capital.
SeattleSun
American 'meltdown' reason for money injection Fortis.
28th of June, 9:10 am Europe
BRUSSELS/AMSTERDAM - Fortis expects a complete collapse of the US financial markets within a few days to weeks. That explains, according to Fortis, the series of interventions of last Thursday to retrieve 8 billion. "We have been saved just in time. The situation in the US is much worse than we thought", says Fortis chairman Maurice Lippens. Fortis expects bankruptcies amongst 6000 American banks which have a small coverage currently. But also Citigroup, General Motors, there is starting a complete meltdown in the US"
Orginal in Dutch at
Telegraaf.nl - De website van wakker Nederland
This is the third European bank to warn THE SKY IS FALLING in the last week.
Barclays
Barclays warns of a financial storm as Federal Reserve's credibility crumbles - Telegraph
Royal Bank of Scotland
RBS issues global stock and credit crash alert - Telegraph
.
.
.
mndean,
Drilling the tank? Man, that's mean. Hope they don't spark the steel!
Drill MY tank and it's Glock time. That's hard to believe for $60 worth of gasoline but who knows. The times are indeed difficult.
Hopefully this kind of concern lasts long enough to get real backing for alternative energy. We desperately need it for the environment and we really really need it for national security. Just ask the old CIA Director.
An interview with geo-green James Woolsey, former head of CIA | Grist
Saturday night rockblogging...
The song which immediately came to mind about cruising, and the beginning of the end..
Don McLean - American Pie
Ray o t f,
Exactly. I used to drive some Chevys but I never found a levee! Still, a classic.
I think it's the combination of portable drills and plastic fuel tanks - technology advances that benefit us all, even the criminals.
Heck, I too grew up in a small cruising town. Friday & Saturday nights, up & down Main, it was the place to be.
Misean, if you're out there, I had a moderately built '70 CST/10. More than enough HP to get into trouble.
Every time I fill up these days I can't help but wonder how a teenager could possibly afford gas.
"I think it's the combination of portable drills and plastic fuel tanks - technology advances that benefit us all, even the criminals."
And SUVs. From what I've read, SUVs are the preferred target. Higher off the ground, so easy and quick access to the fuel tank.
Higher off the ground, so easy and quick access to the fuel tank.
and the cat-con. Precious metals are where you find them.
Oh,please steal more cat cons. I'm a palladium hugger.
Bill Moyers on Oil:
Bill Moyers Journal . Watch & Listen | PBS
Brazen youth on a cell-phone in Borders bookstore on Saturday night: "Dude, you drive, I don't have any gas left"...I don't think money managers, who are quite affluent, really understand the sea-change in behavior that has begun.
If people are driving less, there may be a downstream effect on car tire replacement.
Here is a quick list of possible candidates for that particular business drop off.
Ross writes:
I noticed that CAT is getting out of the diesel truck market. I don't know if it is EPA or other factors. They used to make a great 2 cycle but EPA killed that market.
Ross | 06.28.08 - 10:09 pm | #
The truck OEMs have decided the biz is so good they want to build their own engines so CAT is focusing engine development toward their own product instead - the decision on the part of the OEs was made a number of years ago in the boom & well underway now. Not certain when their SOP makes it no turn back but it isn't far off.
Morons. Always have had the worst timing.
Am I the only one or did any of you go through your 'cruising years' during the 70s oil crunch? I graduated from HS in '75 just to give you a time stamp.
Our cruising was severely limited due to gas lines & price hikes... we did just fine. I am certain today's kids will do just as well...
There is an awful lot a guy-n-gal can do in a parked car. Believe me.
American teenagers are out cruising more than ever... it's just that their vehicles have changed. Now they do it in 130,000 pound M1 Abrams tanks and 8,000 pound up-armored Humvees.
Dryfly?
So Paccar et al are going to scratch build motors? Seems shallow thinking to moi. Got any take on Cummins?
The build in heavy equipment looks like another 5 year or so, no brainer.
Another hard news story from the NYT!
SeattleSun - TOL has a thread with 34 posts discussing the 3 bank warnings at
Fortis: Complete Collapse of U.S. Financial System Imminent - The Tree Of Liberty
and the Market Ticker has a thread with 68 posts discussing it too.
TickerForum Error - Unauthorized Request
CR - It seems strange for 3 major Euro banks to all be dissing the financial markets as hard as they are right now. Fortis is claiming that a catastrophe is coming in days. Whats up?
"FED EX needs to take the express out of their name. I noticed also that their big highway rigs never exceed 60 to 65 mph. Smart move, actually."
Ross | 06.28.08 - 10:09 pm | #
Ross,
Corp speed limit is 65. A few are set faster(71). Controlled by,you got it,the ECM.
I filled the Cobra and cranked out 100 miles or so today. That will make up for a few teens(8 gal).
Chris
"Got any take on Cummins?
The build in heavy equipment looks like another 5 year or so, no brainer."
Ross | 06.28.08 - 11:03 pm | #
I have some Common Rail motors. What do you want to know?
I personally will not own a diesel until we get a couple of good years after 2010 and the particle traps...Yes,I already have seen/worked on this upcoming junk.
Chris
Ross writes:
Dryfly?
So Paccar et al are going to scratch build motors? Seems shallow thinking to moi. Got any take on Cummins?
The build in heavy equipment looks like another 5 year or so, no brainer.
Ross | 06.28.08 - 11:03 pm | #
Caterpillar to exit U.S. heavy-duty engine market, partner with Navistar
Crazy timing - all of them.
Kids still crusing here in Podunk only now thay are using 4 weelers, Nice thing about Podunk is you can do that and not get a ticket. A lot of adults are driving them to work and even saw a couple of golf carts. I love rural America. Get 'R' Done.
@ Dryfly,
Thanks oodles for that link. I missed it.
I have a lot of respect for Cat. It was one of the first companies I started to follow as an analyst in the late 60's. Peoria wasn't a great visit in January, though.
Thanks again. Old codgers need help keeping up.
Cobradriver writes:
"Got any take on Cummins?
The build in heavy equipment looks like another 5 year or so, no brainer."
Ross | 06.28.08 - 11:03 pm | #
I have some Common Rail motors. What do you want to know?
I personally will not own a diesel until we get a couple of good years after 2010 and the particle traps...Yes,I already have seen/worked on this upcoming junk.
Chris
Cobradriver | 06.28.08 - 11:13 pm | #
I'm looking at parts for the next gen particle traps now - but ag related product. It's coming along - hold your horses.
OK. Chris and Dryfly, you are my lead.
Cobra, you get 12.5 mpg? I only get 9 in the twin turbo. Thinking of trading down for fuel economy!!! NOT!
I'm looking at parts for the next gen particle traps now - but ag related product. It's coming along - hold your horses.
dryfly | 06.28.08 - 11:25 pm | #
Come on. You know the rule. You NEVER EVER buy the first year of production. I like to see trucks after the third year. Can you say not to many bugs??
Chris
I noticed also that their big highway rigs never exceed 60 to 65 mph. Smart move, actually.
I did an experiment last month. 65MPH to Fresno and 75MPH back.
35mpg going and 25mpg coming back. About 2 gallons worth, or a free lunch in Los Banos.
"Cobra, you get 12.5 mpg? I only get 9 in the twin turbo. Thinking of trading down for fuel economy!!! NOT!"
Ross | 06.28.08 - 11:29 pm | #
I get about 15-16 at 80mph. 3.73's with a overdrive trans. Around town. God, I hate to think. Maybe 8? I don't know honestly. If the debit card works that means I have gas,right?
Hey it is sorta a big block...
Chris
I'm looking at parts for the next gen particle traps now - but ag related product. It's coming along - hold your horses.
My 4-cyl Ford farm tractor (which turned 50 this year) burns whatever the red-dye stuff is they sell around here. Considering how old it is, I wonder if its a candidate for the used cooking oil scheme (not that I want to screw up the inj-pump just to find out).
I'm guessing there was much more sulfur in the diesel back around 1958.
Come on. You know the rule. You NEVER EVER buy the first year of production. I like to see trucks after the third year. Can you say not to many bugs??
Chris
Cobradriver | 06.28.08 - 11:30 pm | #
I hear ya.
To be honest - it might take a lot longer... not because the designs aren't okay - but the fuel supply will remain 'dirty' far longer than folks expect. As I am sure you are aware - these things need super clean fuel & with the shortages & tight margins there is likely to be some 'cheating'.
I expect it will be added 'job security' for you - like you need more of that, right?
"I wonder if its a candidate for the used cooking oil scheme (not that I want to screw up the inj-pump just to find out).
I'm guessing there was much more sulfur in the diesel back around 1958."
RayOnTheFarm | 06.28.08 - 11:36 pm |
Ray,
I am pretty sure the red stuff is still standard sulfur levels. The problem running veggie oil straight is you don't want it setting in the system and jelling. Big mess. A friend is using it but he runs 45 minutes to work on a dual fuel system. 5-10 minutes to warm on diesel. Switch to veggie oil for 30. Back to diesel for the last few miles to purge system...For a tractor I would just stick with fuel...
Chris
"I expect it will be added 'job security' for you - like you need more of that, right?"
dryfly | 06.28.08 - 11:36 pm | #
I will say after the great garbage purge when the initial ULSD change took place,filter changes have dropped to only on p.m.'s. I don't know what they used for lubricant but boy,it sure cleaned everything out. Hopefully by the time 2010 rolls around the fuel will have done its job.
Chris
About the only kids who'll be able to cruise are the Amish kids going through Rumspringe.
given the price of hay, I doubt it...
My Grandad, born in 1899 told me stories about the difference in the quality of fuels in the 1920's. The ethyl additive was added at the pump by ounces. It was also red. He could always tell the spendthrifts that over 'ethyled' their motors by the amount of red dye around their cylinder heads. VW recommended in the 60's that after 100'000 miles that you put a gallon of diesel per tank (10 gal) so you woudn't blow the heads off.
Fuel quality varies by refinery. In the 60's, Texaco had the most sulpherous gas in the country from their El Paso refinery. Sulpher is not good unless you use it as fertilizer.
Regarding cruising, is CR gay? I know Tanta is lesbian, but CR sounds too uptight.
Cruising for sex - Wikipedia, the free encyclopedia
"In a specifically sexual context, the term "cruising" originally emerged as an argot "code word" in gay slang, by which those "in the know" would understand the speaker's unstated sexual intent, whereas most heterosexuals, on hearing the same word in the same context, would normally misread the speaker's intended meaning in the word's more common (and presumably less threatening) nonsexual sense. This served (and in some contexts, still serves) as a protective sociolinguistic mechanism for gay men to recognize not only each other, but those who may wish to do them harm in broader societies noted for their homophobia."
Ah, the golden age of film:
YouTube -
THE 'TERRAISTS', THEY'VE TAKEN OUR FREEDOMS!!!!!!!!!
Seriously though: has anyone seen Dick Cheney? Where's our #1 attack dawg at with oil out of control? At least he parked his bounty in inflation-protected securities before taking office, a hint of things to come no doubt....
dryfly
yep me too
i cruised in a buick special that had a wildcat 445 engine.
the special was the lightest and smallest car buick produced with this engine
it was a screamer
0 to 60 in 6.5 seconds with an automatic trans
i used to take kids i went to school with for a ride around the local lake...curves and straights. and scare the hell out of em.
kids would bet weather or not somebody would take a SECOND ride with me
on a good day got 12 miles per gallo
By the way, didn't the Kinzie Report blame backseats in cars for a rise in out-of-wedlock births?
Well, if the cars aren't moving anymore, presumably that makes for more "backseat" time.
Hi Fellows: How about this !!?
Ben Bernanke, the chairman of the United States Federal Reserve Bank, faces a general investigation by the International Monetary Fund. Just one more example of the Fed losing its power.
The IMF's board of directors has ruled that a so-called Financial Sector Assessment Program (FSAP) is to be carried out in the United States.
Also, a combination of crappy economy and higher minimum wages = less summer jobs for teenagers.
Jesus - Please leave!!
Teenagers are boring...
Gretchen Morgenson/NY Times
E-Mail That Investors Might Like to Read
FAIR GAME; E-Mail That Investors Might Like to Read - NY Times
Amazed that in all the discussions in MSM, congress, etc., I have yet to see a single mention of bringing back the 55 mph speed limit. Worked in '73, don't see why it wouldn't now.
McCains Defaulted On Home Taxes in La Jolla, CA For Last Four Years, Newsweek Reports...
McCains Defaulted On Home Taxes For Last Four Years, Newsweek Reports
With people driving less often, more slowly, and on less crowded roads, one would think that an auto insurance pure play would be a smart buy.
But I suppose what they're gaining on fewer and less costly payouts they're losing on the reduced income from their floats due to capital market conditions.
Thanks for the links, Simian. I hope that those Europeans are right!
Obviously, the McCains need to get a 'friend' like Tony Rezko, to keep those pesky real estate bills low and paid.
FFDIC writes:
20...x_n_109785.html
McCains Defaulted On Home Taxes in La Jolla, CA For Last Four Years, Newsweek Reports...
Breaking News and Opinion on The Huffington Post
FFDIC | 06.29.08 - 12:42 am | #
How does somebody do something that stupid? I mean isn't it one of the first things you do when running for Prez? Pay off the mistress & make sure all the bills are paid?
We'll know if its 'news' if its all over the Sunday AM talk shows. If not, maybe a 'nuthinburger'... I mean everyone does it, don't you?
IIRC John and Cindy McCain have always been financially independent of another; so it's not really his house. Also, most of Cindy's wealth is controlled by a trust, so it's likely that there was some type of administrative incompetency/mixup. Some of the common mistakes that absentee homeowners make are (1) thinking that property taxed is escrowed or (2) not having the county mail to the correct address.
No big deal, they'll have an administrator take the fall.
Whatever happened to Tanta? Bring her back. Did the "powers that be" eliminate here?
Whatever happened to the birch tree background pictutre? Bring it back. Was there a copyright issues with it?
Husband and wife "financially independent" from each other? Very un-zen says the old master. A husband busy with his career, and in particular one like that of McCain, needs to delegate the managing of daily money stuff, not the big decisions, to somebody. And if he has married a wife that is not up to the task...very un-zen says the old master. I find the mere thought of "financial independence" amusing...unless the wife is drop dead ugly and dumb as a monkey.
Birch tree forest's been gone forever. It was lovely, but the site does load much faster without it.
Buy a poster, It is me.
Simian...the US, where I presently live, is bankrupt. No news there. As is the UK also. The only things of any value you guys over here have for the rest of the world are 1) beautiful nature (the great outdoors), 2) a big mean lethal army and 3) Hollywood (films, TV, record labels). That´s about it. Oh, and truck loads of debt and low IQ consumers galore.
No more birch tree? How much does the poster cost?
No big deal, they'll have an administrator take the fall.
Anonymous | 06.29.08 - 12:57 am | #
LOL. The American Way.
It is me from Europe,
Don't forget, we also have the ipod.
iPod? What´s that? A simple processor, an .MP3 codec and a hard-drive. All manufactured in Taiwan or wherever. A very low tech device, that I admit to owning, but which will be replaced by your average cell phone, unless it already has. Oh, I forgot to mention, you also have a nice porn industry here...but keep it too low key
You should be more open and proud about it. Best in the world 
READ THIS! READ THIS!
"Officials with the International Monetary Fund (IMF) have informed Bernanke about a plan that would have been unheard-of in the past: a general examination of the US financial system. The IMF's board of directors has ruled that a so-called Financial Sector Assessment Program (FSAP) is to be carried out in the United States. It is nothing less than an X-ray of the entire US financial system."
Repeat: IMF IS GOING TO AUDIT USA!
International - SPIEGEL ONLINE - Nachrichten
world/0,1518,562291,00.html
The US also has the most lethal investment bankers on the planet...with the ability to blow up a balance sheet anywhere in the world and destroy one's credit rating...all the while taking a nice cut off the top.
(Sigh...)
Thanks for the head's up AlphaBeta. From the article:
For seven years, US President George W. Bush refused to allow the IMF to conduct its assessment. Even now, he has only given the IMF board his consent under one important condition. The review can begin in Bush's last year in office, but it may not be completed until he has left the White House.
low IQ consumers galore.
Tops in the world, it's probably one of our hidden strengths.
bankruptcies amongst 6000 American banks ?
Nice!
AlphaBeta
The IMF better bring its bongwater. It is in for one big fucking surprise unless they only talk to G.H. Sheila Bair and whoever said it is all contained.
Repeat: IMF IS GOING TO AUDIT USA!
Uncle Ben and the Fed will be locked up, The USA will be financially exposed as " A BANANA Republic".
Maybe then we can start rebuilding.
I'm not afraid of the future as much as I am of the Status Quo !!
Repeat: IMF IS GOING TO AUDIT USA!
Ha ha! Too late suckers. Should have done that years ago.
Like we can't hide shit from auditors,...get me lama on the phone, stat! We've got a cover-up to launch.
Back in the 70s, down in Texas, we called a siphon an Oklahoma credit card. North of the Red River, those guys called it a Texas credit card.
They never could get it right north of the Red River.
Doc at the Radar Station,
I'm in love @ 0:47; nice bike!
Vanishing Point (1971) .... Nude Motorcycle Rider
Gilda Texter
Gilda Texter
Wow!
My research enthusiasm rarely takes me down this road, but sometimes you have no choice between the path you take:
http://en.wikipedia.org/wiki/Image:Nude_Biker.jpg
IMF already audited the UK; hell of a lot of good that did.
IMF gave economy all-clear |
Business |
The Observer
Hey Kona Gold, she's not wearing a helmet. You can't imagine how much hitting a bug at fifty is going to hurt. Hell, rain with no helmet, feels like bullets. Also while gassing up, I saw another sign of the apocalypse. The guy in the Hummer in front of me only bought five gallons, on a credit card. $4.39/gal.
The guy in the Hummer in front of me only bought five gallons, on a credit card. $4.39/gal.
Was gas cheaper across the street?
The only thing across the street was an empty furniture store.
Re: "she's not wearing a helmet"
That which does not kill you, makes you stronger....
The end of teenage driving is the beginning of bigger societal shifts as well - "teenagerdom" itself being a product of the automobile age. There is no "official" teenager stage of life. It is a marketing concept - one can see another one developing before our eyes right now, "tweendom."
As teenage mobility and prosperity declines, a number of companies (and lots of really stupid advertising) will go with them.
It won't take too long. Today's 10 year olds will never know the cruising car culture.
Price alert: Saturday night date in 1963.
$1 = 3.3 gallons of gas
$1.70 Admission for two to movies
$2.30 Split a meatball sandwich, large fries and 2 cokes.
A five dollar date. Thanks Mom.
Ross | 06.28.08 - 9:36 pm | #
In inflation adjusted terms that would be, today, a $34 date.
$13.20 for the gas
16.50 for the tickets
$9 for 2 McDonald' Happy Meals
Total $38.70 or about $4.70 more than in 1963. The good old days seem better when you forget inflation.
David Wilcox : Saturday They'll All Be Back Again
twenty bucks to fill up the gas tank for the lawn mower yesterday.
Seems like motorcycles are back in volumes not seen in 30 years. Remains to be seen what these short sighted folks are going to do come december.
Then again, I remember a buck fifty a gallon in 78 when I was making 1/10th what I make now. An cars got 30 percent less milage. Once you got used to it, you lived with it.
I also remember the spike in all products made of fuel. Debating order new sails for the boat and ski boots before raw prices skyrocket.
Finally, I remember Congress demanding something be done. Been 30 years and they have not done a single friggin thing. Do not expect a change in the short term folks. We are on our own...
$350 per day
"That's 70 gallons of diesel. 10MPG is 700 miles. 10 hrs per day of driving is an average of 70mph nonstop.
Something doesn't add up there."
Sure it does.... it's called inflation expectations.
Cobradriver, are you driving a vintage Shelby Cobra, or the Mustang variant? The Shelby's been a lust object of mine since Carroll Shelby brought it out back in the '60s. 427 or 389?
The McCain back tax thing will be a minor, temporary embarrassment, especially since they've already paid most of the balance. It doesn't look good, but in the grand scheme of the campaign it's nowhere near the Wright brouhaha. That's not to say the Dems won't crow about it, but needless to say Fox will bury it, or more likely not mention it at all.
Those arguing that the sustained rise/high oil prices are inflation spiraling are barking up the wrong tree.
This is a longer term (2-5 years) deflationary force because incomes are not rising to keep up with these prices.
Where is the inflationary spiral? Nothing, absolutely nothing like an inflationary spiral has occurred even with oil at $140 and short term interest rates at 2%.
Wake me up when anything other than oil and some food prices spiral. Wake me up when housing, autos, durable goods, and high tech electronics see double digit price increases.
Stupid spoil brats. Driving around polluting and wasting energy.
I hope gas goes to $7 a gallon.
Besides, they now drill the tanks and take every drop.
Of course they drill the tank. Hasn't anyone around here tried to siphon gas for the lawnmower in the past three decades? In the 1970s they started putting baffles in the fill pipe and tank that make inserting a siphon hose next to impossible.
Leftys Liquors: Also while gassing up, I saw another sign of the apocalypse. The guy in the Hummer in front of me only bought five gallons, on a credit card. $4.39/gal.
That's just about enough to get to the next gas station. Sounds like the Just-In-Time business model.
AlphaBeta:
Don't get your knickers in a knot, Dood.
FRB will refuse to cooperate... because Al Qaeda may be watching CSPAN, and then the terrists would win.
In other news, Cindy McVain is quoted saying, "Paying your bills on time is for the little people."
On the local scene: Loose change must be getting a bit tight. In years past, the nighttime scene begins sounding like Baghdad about six weeks before the 4th of July. This year, with the 4th rapidly approaching, it barely sounds like Beirut. (And the almost constant blare of 150 decibel ghettoblastermoblies cruising through is down to a trickle.)
Screw the IMF and the horse they will be riding in on.
Jim, I adjusted my 63 date prices and came up with about $35. Anyway I figure my dollar is worth only 15 cents of what it was.
Speaking of cars, through hedonic adjustments, a new car today is on the inflation books at about $3.500.
Oh my, and the poor darlins' will have to walk 5 miles in the snow this winter to go to the mall.
The real men on harley's with holes in the tailpipe still have enough money to gun the motor enough at 3AM to wake up the baby.
I'm happy they still have extra cash.
Troy,
My diesel pickup gets 10 mpg or so going uphill, downhill or on the flat.
Of Course, it has a 2700 lb camper and is pulling a two horse slant most of the time. Even without the horses the mpg doesn't change much. That $200 a barrel oil is going to change our use of that truck a lot. It will be parked and we will ride the horses locally.
Our volunteer work(?) will come to an end also.
"Bring It On!" "Mission Accomplished!"
This is a longer term (2-5 years) deflationary force because incomes are not rising to keep up with these prices.
Another victim of FED propaganda?
Wage spiral is a very convenient excuse for them to ignore inflation; in reality wages have nothing to do with inflation, it's a money supply phenomenon.
If everyone goes poor in a country with so many homeowners, you would expect home price to collapse down to 10,000$. That doesn't mean a huge deflation has occurred, a pound of apples can go to 20$ in the same time.
If wages go down in real terms, it changes the composition of a typical consumer basket, and it forces many consumers to sell some of their possessions, distorting relative prices of various goods to the extreme. Some prices go hugely up, some tank.
This gives FED plenty of items to choose to point to deflation, while prices of many essentials sky-rocket. Very easy to hide your money printing in such environment. That's all there is to wage-price spiral talk.
Why are smart people so easily fooled?
Total $38.70 or about $4.70 more than in 1963. The good old days seem better when you forget inflation.
jim | 06.29.08 - 6:56 am | #
Fed minimum wage was $1.15 in the sumer of 1963 - bumped to $1.25 later that year (sept).
So that date was really about between 4.3 and 4 hrs of teenage work in 1963...
Today it is at $5.85 and will be bumped to $6.55 in a few weeks...
That $38.70 becomes 6.6 and 5.9 hrs... and my guess is fewer teens earn min wage than ever before (I have raised a total of three - only one still in teen years - none have ever worked for as little as minimum wage, most have earned $8-$10/hr as teens & we live in low cost part of the world - my guess is coastal teens make quite a bit more though their expenses are higher).
Anyway - even if the knuckleheads have to work an extra hour or two before going out on the big date - its two less hours they can get in trouble... plus wears them out - never a terrible thing. There is always a silver lining somewhere
Min wage link
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Couple of items in the news here in Atlanta:
pinkslips for ye
most have earned $8-$10/hr as teens & we live in low cost part of the world - my guess is coastal teens make quite a bit more though their expenses are higher
Hmmm. $7/hr. this summer, camp counselor. First job. $8-$10? That would be surprising.
Hmmm. $7/hr. this summer, camp counselor. First job. $8-$10? That would be surprising.
Outsider | 06.29.08 - 10:42 am | #
My kids have all been lifeguards at a community pool & rec - starting wage $8 & almost all the hours they want. There are even better paying jobs so that sort of forms the floor. The other jobs are generally more difficult & allow less time flexibility - like ag & tourism related jobs.
Now granted - a lot of these jobs are seasonal but that isn't a big issue. We are one of those towns were most kids still do sports or music or theater in the school year so most don't work a lot during then. Its sort of a blast into the past kinda place. The wages & prices are very much 'now' however.
Back in the 60s I had a black primered 55 Chevy with a built 327. All the guys I hung with would cruise through the main street of our dinky little town until we got to the town limit sign. Then one by one we entered hyperspace until we got to the next town. I had a heads up display for a speedometer. As I passed 115 mph, the vacuum windshield wipers would gradually move farther up the glass. Such adventures came at a cost though. Friday nights saw an endless gas line at the local sawmill, and the local junkyard quickly ran out of 'bondo' cars to be resold to other wannabe racers. Such was life where even adults didn't have jobs.
Regarding that IMF audit..............Anything too big to be swept under the carpet is automatically counted as furniture works all over the bizness world.
This old high school life guard (1960) made 65 cents an hour. Back then the minimum wage did not apply to municipalities. You only paid minimum wage if you were engaged in interstate commerce.
But working 65 hours a week I'd net 40 bucks. Did I say work!!! Oh the babes.
Interesting that the S.S. administration has me down for paying in $12.37 that year.
Gas mileage? I had a 73 Caddy El Dorado from 74 to 77. 540 cub.in. 375 hp. weight=small tank.Had knobs and buttons I never did figure out what they did. Maybe 6mpg town,maybe 8mpg highway. I still remember having a windowwasher motor going out and they wanted $175 for a new one(Guy at local gas station found me one for 6 bucks).4 new tires would set you back 5-6 hundred. Many many road trips.Great car! Was married a week to 2nd(now ex) wife who borrowed it one night and came in about 3AM and said "I totaled your car".I loved her so much that all I said was "Are you OK?".Good Times! Good Times!
But the far-from-carefree-looking tow truck driver shared with me his daily/monthly fuel costs to run ONE tow truck (flatbed) with diesel:
$350-$400+ per DAY.
$12000-$13000 per MONTH on average.
Apparently his towing company had called a meeting this morning to try and figure out how they will continue to stay in business. And they're AAA subsidized / supported / endorsed.
Ouch!
FYI, TOW trucks run on two 12 hour shifts per day. They tend to be moving 20+ hours per day too! So to Troy, it does add up! I was towed a few months back and the economics of towing was really interesting.
That other Tow company is in trouble with AAA. Why? They cannot afford to drive around the flatbad's that used to carry suburbans. (The smaller Izuzu ones max out at an F150.) They're parking more trucks and risking the ire of AAA (longer response times). So far all the trucks parked are the larger ones that need work. (Why work on something that costs too much in diesel.)
I'm expecting AAA is going to have to do fast renegotiation.
Got Popcorn?
Neil
Now my kill file makes me feel like Pontius Pilate. :^(
dryfly:
your kids work???
oh the horror. I haven't met a west coast kid who went to work for a longggg time. child abuse you know.
unless you count posing for "my sweet 16" to be working.
But working 65 hours a week I'd net 40 bucks. Did I say work!!! Oh the babes.
Ross - Wonder what those babes look like now?
Age is so cruel.
There is a big difference between some analyst from Barclays or saying that the financial system is going tits up and the boss of Fortis saying it. You expect him to have access to a lot more inside information. Though saying that 6000 american banks are going bankrupt is a number which i find way to high. I believe i read somewhere that there are only 600+ FDIC insured banks
well anonymous, as previously mentioned 60% of most banks assets are in RE. if RE tanks 30% thats 18% of banks assets that go poof. so whats the standard leverage among the banks, 1:10?
see, 30% decrease is enough to wipeout the equity of all banks
I find the fact that some segment of the American population may have to stop purposely wasting fossil fuels to be the cause of this much consternation is hilarious.
You know gas is NOT expensive when cars still form long lines at the car washes for expensive car washes.