High fuel prices are pushing some drivers to the financial brink

[Richard Tafoya]

LA Times:
http://www.latimes.com/business/la-fi-gashurt16jul16,0,5275140.story?page=2&coll=la-home-headlines

Joseph Godino, an Apple Valley resident whose truck driving job is based in Buena Park, signed up for extra shifts and financial counseling, and his wife went back to work to add income. But he has fallen further behind. With his gas cards maxed out, Godino has switched to filling his tank using a Visa card.

California's sky-high gasoline prices are slamming Godino and other motorists who had been barely getting by. Californians, saddled with the nation's priciest gasoline outside of Hawaii, are paying more than 70 cents a gallon extra compared with a year ago and nearly $1 more than two summers back.

The wallop is worsened by interest rates that are at their highest levels in more than five years, boosting adjustable-rate mortgages and credit card bills and jacking up the minimum payments on most credit cards.

...

A recent survey for the National Retail Federation found that 42% of households with incomes of less than $50,000 were dining out less frequently because of high gas prices and that 33% with higher incomes had cut back on eating at restaurants.


...

The pressure on household finances is showing up in higher credit card delinquencies, the American Bankers Assn. said. Late payments to credit card companies rose to 4.4% in the first three months of the year — a reversal from six months of declines.

"Gasoline prices are clearly taking a bite out of the consumer, especially among people who are at the margin," said Keith Leggett, the bank group's senior economist. "That's why we're seeing an uptick in the delinquency rate, even though the economy is good."

Godino, the Apple Valley truck driver, can vouch for that.

He tried to refinance his mortgage earlier this year, but it fell through after he had shelled out a $400 appraisal fee and used the monthly mortgage payment to whittle down credit card debt. Suddenly behind on his mortgage, Godino saw his monthly payments balloon to $2,300 from $1,800 to make up for the deficit and stave off foreclosure.

[Regis Philbin]

http://money.cnn.com/2006/07/16/markets/oil.reut/index.htm?section=money_latest

Oil surges after weekend of Mideast violence

Crude climbs back near record high $78 a barrel on worries about supplies.

July 16 2006: 9:53 PM EDT


SYDNEY, Australia (Reuters) -- Oil surged back toward record highs above $78 Monday after a weekend of worsening conflict between Israel and Hizbollah guerrillas, leaving traders nervous the violence could escalate and spread across the oil-producing Middle East.

U.S. light, sweet crude for August delivery rose 58 cents or 0.75 percent to $77.61 a barrel in electronic trading, climbing for a fifth session. Prices soared on Friday to a record high $78.40, but pared those gains by day's end.

London Brent for September the new frontmonth contract, rose 43 cents to $78.01 a barrel, just off Friday's record of $78.03.

"It's geo-politics at the fore," said Justin Smirk, senior economist at Westpac in Sydney. "Israel has been the key story over the weekend, with oil investors keenly watching supply-side risk should the conflict look like expanding."

"Listening to noises out of Iran and Syria there is clearly a risk the violence could spread elsewhere in the region," he said.

[Regis Philbin]

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2006-07-14T155756Z_01_L14906704_RTRUKOC_0_US-ENERGY-OIL-EIGHTY.xml&src=071406_1211_ARTICLE_PROMO_also_on_reuters

Oil's steady march to $80 fails to shock

Fri Jul 14, 2006 11:58am ET

By Barbara Lewis and Peg Mackey

LONDON (Reuters) - Oil at nearly $80 a barrel has lost its power to shock energy hungry consumers who have grown immune to its steady advance.

A year ago, the world flinched as markets topped $60 a barrel, but the pain threshold climbed to $70 after hurricane damage wiped out rigs and refineries in the U.S. Gulf.

Tension in the Middle East is taking it to the next level. On Friday the price of U.S. crude hit a record $78.40.

"We can live with $80 relatively well. It doesn't feel like the panic level yet," said Paul Horsnell of Barclays Capital.

"There is no magic number. The key is the speed of the oil price rise. Provided it's gradual, demand growth will continue."

Oil's rally began in 2002, then gathered momentum the next year with prices rising by roughly a third each year ever since.

"I'm certainly not ruling out $80 as a potentially sustainable price," said Horsnell.

"The fastest rate of concerted global GDP growth in 30 years will help keep demand growth buoyant."

[Richard Tafoya]

Just what the stock market needed - another trigger to kill off its latest rally attempt.

And probably a good time to short any company that depends on cash flow at the lower end of the employment income spectrum. That's the population segment that's getting hit the hardest.

http://ichart.finance.yahoo.com/z?s=WMT&t=3m&q=&l=&z=&p=m50,m200&a=v]

[Annoyedlistner]

OIL IS NOT LUXURY ITS A NECCASITY....HOW MANY TIMES DO WE HAVE TO TELL YOU?

Regis, this country HAS to buy oil to survive...the oil market isnt going to hurt, but every other market out there is going to hurt...instead of our money going to other markets its going to oil companies.

Please explain me to why this is good for the economy.

[pinky]

Regis, you're so inconsistent it's almost funny......you posted old news about environmental regulations adding to the price of gas, and we're left to presume that you think those regulations are bad because it will make gas more expensive (depsite the fact that the analyst in that article got absolutely NOTHING right). Israel responds to the kidnapping of a few soldiers with major bombardments of areas in southern Lebanon, you applaud them, then post the probable impact of Mideast tension on the price of oil.

At least have the guts to decide: are higher gas prices good or bad?

[DoubleEdgeSword]

Not his style. Post a dozen articles at a time and sit back and watch all the "libs" twist in the wind about it. I'm done playing.

[Regis Philbin]

You idiots are too dumb to realize I'm not posting opinions, I'm posting news stories...

Oh, and gas prices here dropped 3 cents over the weekend---down to $2.76...

[pinky]

News stories? From Drudge? That's a laugh!

[Regis Philbin]

Please explain me to why this is good for the economy.

Obviously, it would be better for oil prices to be lower. But the economy is so strong that the rise in prices has had little effect and demand continues to soar. States that have large oil and gas reserves benefit more than those that do not due to higher royalties and influx of new investment by oil companies. That money circulates through the economy. Libs act like the oil companies are taking their profits and sticking them in a vault in the basement and leaving them there. They are investing them in exploration for more oil and gas and new technologies, and yes, they are paying record income tax to the government ($17 Billion by Exxon alone) which should warm the cockles of Socialist liberals everywhere.

[Regis Philbin]

Israel responds to the kidnapping of a few soldiers with major bombardments of areas in southern Lebanon, you applaud them, then post the probable impact of Mideast tension on the price of oil.


This explains the attitude of the pacifist peacenik liberals to a tee. Just a "few kidnappings", that's all. Israel has had to endure this kind of crap for decades on end and would have wiped their enemies out a long time ago if not for the U.N. and others stopping them before they could finish them off. Take 1982, for example. Israel invades Lebanon and has Arafat and his men surrounded south of Bierut, waiting to finish them off. In steps the U.N., brokers a deal for Arafat and his men to go to Cyprus and live to fight for another 20 years. If Israel had been allowed to finish him off that would have been the end of his movement. Then we have the other deals where Israel is forced to give back land won in previous wars in the cause of peace. Arabs promise to recognize Israel after they get the land back. Guess what happens? More and more terrorism against Israel. Appeasement does not work with an enmey bent on your destruction. The only way to achieve peace is to destroy the enemy. Hammas and Hezbollah were set up with the mission to destroy Israel. Let Israel finish them off and then you will have peace.

Notice that few of the Arab countries are defending Hezbollah? (See my other thread) That's because they don't like Hezbollah either, and they especially don't like Hezbollah's main supporter---Iran. They are hoping Israel will remove their problem for them, and they will, unless the U.N. steps in again. :rolleye2:

At least have the guts to decide: are higher gas prices good or bad?

Right now? They're irrelevant.

[Annoyedlistner]

You idiots are too dumb to realize I'm not posting opinions, I'm posting news stories...

Oh, and gas prices here dropped 3 cents over the weekend---down to $2.76...

Watch the name calling...youve been warned.

[Annoyedlistner]

Obviously, it would be better for oil prices to be lower. But the economy is so strong that the rise in prices has had little effect and demand continues to soar. States that have large oil and gas reserves benefit more than those that do not due to higher royalties and influx of new investment by oil companies. That money circulates through the economy. Libs act like the oil companies are taking their profits and sticking them in a vault in the basement and leaving them there. They are investing them in exploration for more oil and gas and new technologies, and yes, they are paying record income tax to the government ($17 Billion by Exxon alone) which should warm the cockles of Socialist liberals everywhere.

The economy is not as strong as you make it sound.....if you only make a certain amount of money like i do, then when gas prices go up, you dont go out as much.....my paycheck has been getting thinner and thinner and its because everytime i go to the pump i put a nice chunk of my paycheck in my truck.....therefore i dont spend money at other places...i would be willing to bet that people on tight incomes are doing the same thing...meanwhile people like you Regis who have money to burn continue to do what they want to with their money.

Gas is $2.90 here...

[db44]

What's a few kidnappings when Israel hasn't stopped military actions either? Israel picks one thing to act on, and think the world should forget what it's part has been to escalate to this level. The kidnappings were in response to Israeli actions which were in response to Hamas... So on and so forth. There is no starting point anymore.

Nice to know you are part of Al Qaeda, Brad. Kidnapping is a good reason for a major offensive? Then what praytell will be your course of action over Gitmo?

[Whoda Thunk?]

Gas jumped 10-20 since yesterday around here.