LCC Stock in a Nose Dive
- Thread starter maddawg
- Start date
Career Reserve
Senior
- Jan 23, 2006
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Never risk more than you are willing to lose! 
jimntx
Veteran
Not sustainable by whom? Us (meaning the good ole USofA)? Since China and India are producing most of the tangible goods sold in this country with much lower wages, I'm guessing that they can pay the high prices much longer than we can.
Will the dollar strengthen? What would occur to make it strengthen? We are pretty much a service economy any more. We sell, but do not produce. The fact that we have borrowed billions of dollars from other countries to pay for the war in Iraq--you do know that not a dime of the cost has ever been included in the Federal budget, don't you?--coupled with the fact that the only way to pay that debt is by printing more paper dollars does not bode well for the strength of the dollar down the road.
I'm guessing that within a year or two, OPEC is going to take oil off the dollar standard and either price oil in Euros or some basket of currencies. Either way, it won't help us because it costs so many dollars to buy a Euro and if oil is no longer priced in dollars, then the world demand for dollars will evaporate.
Yes, I am often chastised for my Pollyanna/Little Mary Sunshine optimistic attitude. Why do you ask?
Be Careful What You Wish For.
Veteran
- Dec 23, 2006
- 2,269
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http://www.forbes.com/feeds/ap/2008/05/23/ap5044752.html
"Given the spike in crude, we expect the U.S. airline industry to accelerate three years of evolution into one - a painful adjustment," Credit Suisse analyst Daniel McKenzie wrote in a client note. "As the industry undergoes the process of 'natural selection,' carriers with low costs, a strong brand, and capital raising options are naturally selected; conversely carriers with high costs, a weak brand, and limited cash raising options are adversely selected."
Which one are we?
"Given the spike in crude, we expect the U.S. airline industry to accelerate three years of evolution into one - a painful adjustment," Credit Suisse analyst Daniel McKenzie wrote in a client note. "As the industry undergoes the process of 'natural selection,' carriers with low costs, a strong brand, and capital raising options are naturally selected; conversely carriers with high costs, a weak brand, and limited cash raising options are adversely selected."
Which one are we?
4merresrat
Veteran
- Apr 3, 2003
- 548
- 0
h34r:
doing it on my knees
Advanced
- Feb 24, 2008
- 148
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Never risk more than you are willing to lose!
That's great advice. Very wise. I've been buying a few shares here and there as it slips. Nothing major. think of it as a scratch off lottery ticket. Invest a couple bucks and you might get lucky. If we go belly up. I'll have a lot more to worry about than the few hundred I put on our stock.
Real tired
Veteran
An excellent reply jimntx.
You are correct. Everything so far has been on one gigantic government credit card. And some day soon, we are going to have to start paying back that debt. Whether your children's children pay the debt, or we, collectively as a society, start paying the bill now, payment WILL come due.
Unfortunately, I do not think that it will take a year or two for OPEC to convert to the Euro and take oil off of the dollar standard. I believe it will be much sooner. When that day comes we will be a true "Global Market Place".
http://articles.moneycentral.msn.com/Inves...521markets.aspx
"Eighty-five million barrels of oil a day is all the world can produce, and the demand is 87 million," Pickens said. "It's just that simple."
You are correct. Everything so far has been on one gigantic government credit card. And some day soon, we are going to have to start paying back that debt. Whether your children's children pay the debt, or we, collectively as a society, start paying the bill now, payment WILL come due.
Unfortunately, I do not think that it will take a year or two for OPEC to convert to the Euro and take oil off of the dollar standard. I believe it will be much sooner. When that day comes we will be a true "Global Market Place".
http://articles.moneycentral.msn.com/Inves...521markets.aspx
"Eighty-five million barrels of oil a day is all the world can produce, and the demand is 87 million," Pickens said. "It's just that simple."
FlightChic
Veteran
- Feb 18, 2007
- 954
- 0
This brings back memories of post 9/11 when stocks were down to $4 and I was furloughed. Good times! Good times! Surely we won't file another Ch. 11. Or better yet, Doug will come to us demanding they we take more pay cuts and our union reps will sell us all down the river. Hey, what do they care! They don't have to fly and they still get paid all those hours and they get to be at home with their families sleeping in their own beds each night, unless they do ETBs which is a big NO NO! I'm so ready for another furlough though.
legacy-to-LCC
Veteran
- Feb 20, 2004
- 778
- 2
flightchic, can you imagine jurassic judy and tyrannosaurus theresa sitting around the opr table wondering what happened to their weekday FCO block?
furlough away...
InternationalShannon
Veteran
Ha ha ha, I can just see all of you sitting here going? Furlough? Buy out?Yes please...
sharktooth
Veteran
- Jan 27, 2006
- 1,846
- 0
Thanks. Your thoughts parallel mine in this area. Keep reminding the US that they have yet to pay one thin dime for Dick and George's fabulous Iraqi adventure.Not sustainable by whom? Us (meaning the good ole USofA)? Since China and India are producing most of the tangible goods sold in this country with much lower wages, I'm guessing that they can pay the high prices much longer than we can.
Will the dollar strengthen? What would occur to make it strengthen? We are pretty much a service economy any more. We sell, but do not produce. The fact that we have borrowed billions of dollars from other countries to pay for the war in Iraq--you do know that not a dime of the cost has ever been included in the Federal budget, don't you?--coupled with the fact that the only way to pay that debt is by printing more paper dollars does not bode well for the strength of the dollar down the road.
I'm guessing that within a year or two, OPEC is going to take oil off the dollar standard and either price oil in Euros or some basket of currencies. Either way, it won't help us because it costs so many dollars to buy a Euro and if oil is no longer priced in dollars, then the world demand for dollars will evaporate.
Yes, I am often chastised for my Pollyanna/Little Mary Sunshine optimistic attitude. Why do you ask?
If the dollar were to magically equal the euro, what would the price of oil (barrel or at the pump) drop to? Any idea?
About $90 a barrel based on today's conversion rates. Still high...
jimntx
Veteran
Simple. The dollar is currently worth .6344 Euros. That means that at today's price, $135/bbl, the same barrel of oil costs 85.64Eur. So, if the dollar and the Euro were on parity a barrel of oil would cost approx. $85/bbl. At that price we would not be talking about furloughs or parking a/c at AA.
honestly guys, it doesnt matter if oil is priced in dollars or euros, it is still going to cost the same - it will just become harder for us to figure out what the cost is because we'll be the country doing the currency conversions... If you go to Europe today, your dollar converts to .6344 euros, and if a European comes to the US, they get $1.57.
