I received a few questions on refining and a few other issues we are facing. I wanted to share my answers with everyone:
Comments: John, why has the president of Exxon repeatedly say that there is no shortage of oil, only refineries?
It's true. Our nation痴 short term problems are not the availability of oil; it痴 the availability of its refined product, gasoline. During the 8 years of the Clinton Administration, environmentalists forced several refineries to close their doors because stringent environmental regulations made refining an unprofitable business. The results, of course, are what we are going through right now, and there are no quick fixes.
Subject: housing stocks
Comments: Is Wall Street carrying the homies for a few more rounds before the knockout?
It seems that Wall Street's conduit for misinformation (IE- Jim Cramer and others) continue to point to the low p/e's among the housing stocks. I read a report that said that better than 20% of all new home purchasers were speculators looking to flip their purchases for a quick profit.
I know that this is at least partially true because most of the condo investors I know here on the Gulf Coast are looking to sell their speculations to an iced over northerner who enjoys CAT 5 hurricanes.
Alan Greenspan is clearly targeting the real estate sector. In his remarks to the American Bankers Association Annual Convention in Palm Desert, California on September 26th, Greenspan said:
"Transactions in second homes, of course, are not restrained to the same degree as sales of primary residences--an individual can sell without having to move. This suggests that speculative activity may have had a greater role in generating the recent price increases than it customarily has had in the past."
