Episode 37: Little Willie and the Price of Gas

by robbooker on April 16, 2012

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Rob Booker is joined by co-hosts Raghee Horner and Jennifer Thornburg. This show begins with a discussion of the price of gasoline and how it rises quickly but doesn’t seem to fall quickly. Also, Rob introduces a new segment of cautionary tales called “Dumb Stuff That Rob Does.” Raghee gives some highlights that she taught her attendees at a recent Webinar. And Raghee and Jennifer talk about which trading sessions they enjoy the most, as well as the importance of determining the time of day that you’ll be most successful trading. Join us!

Jennifer on Twitter: @JenTho3

Find Raghee’s book here:

{ 3 comments… read them below or add one }

Amarsir June 7, 2012 at 10:56 pm

Head scratching here, as I’ve never in my life heard “oil is unlimited because the earth was created for us to use.” I’m sure someone, somewhere would say that, but please don’t think it is (or pass it on as) a typical view.

The “we’ll never run out of oil” argument comes from the basic market rule that people who make their living selling us energy aren’t stupid enough to wake one morning and realize they’re out of supply. For the same reason a sensible trader doesn’t blow up their account on a single trade. Oil’s obviously not unlimited, just not nearly so limited as we’re often led to assume.

And as for or 49th state, every Alaskan citizen not only pays no state taxes, they receive a yearly check from the state because of oil drilling on state-owned land. Considering their state position, I don’t think they’re quite as opposed to a federal stance as you think.

(Not that I feel particularly strongly myself, but I felt you were giving a factual misrepresentation. Enough to make me comment on a 2-month-old post.)

Reply

robbooker June 10, 2012 at 1:09 pm

Amarsir,

First of all, thank you for listening! Happy to have you here.

Second, I want you to know that I do not share the view that oil is unlimited. I think that is an insane point of view for two reasons:

1. It is not unlimited. The earth is a finitely round object spinning around in space. The earth does not manufacture unlimited supplies of anything.

2. Even if we had an unlimited supply of oil, I would oppose its use. I think it is gross, dirty, it corrupts people and governments, it pollutes, it smells, and scraping stuff out of the earth is harmful, destructive, shows poor stewardship of our planet … I’ll stop there.

Great to hear from you.

Rob

Reply

Amarsir June 10, 2012 at 9:54 pm

I know you don’t. I was accusing you of strawmanning the position, not defending it. 🙂

But I appreciate your reply and point of view, and remain a faithful iTunes subscriber. Here’s to some good trading this week.

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