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**cepAceryTem** · 01-02-2007, 06:21 PM

I don't think that I should be afraid... I mean... what is there to fear on here? But when you have oil prices that high and the companies are profitting from it while the main source of our oil is coming from the same country where people are dying, it kinda drains the excitement from that excessive profit, except from the business and its investors of course. OPEC is only screwing the US consumer in raising the price of crude, but gives the company a higher profit margin because the prices are higher than what it used to be years ago. The problem is price inflation depletes the value of the dollar and so the prices rise, thus WE who put gas in our cars every week pay for it. There goes half your investments each year - back into EXxon/Mobile's profit, in which you only get a certain amount of share back.

As far as 401K, Exxon is able to match contributions, like most companies, because it is tax deductable for them.

Think of it as a clothing store that gives its employees a 20% discount on all clothing in the store. An employee gets his check and spends some money in the store. That store makes money back from the employee regardless.

I assume you are referring to Iraq. While they have over 10% of the worlds known reserves (does that answer the questions as to why we find them strategically important and why we cannot leave them to our enemies?) they produce only about 2 million barrels a day and export a little more than half that amount. That's what SA has cut in their production over the last six months. That barely runs my petroleum sucking toys much less be our main source of oil.

I'm not trying to be condescending (okay maybe a little but in a nice way) but thanks for the lesson on inflation. Here's the thing...if inflation is around 2.5% per year, but my investments make me over 10% per year, I'm way ahead of the game. And that inflation rate is for everything...not just gasoline. Couple that with the fact that I put significantly less gasoline in my toys than I make/invest, then my Exxon profits and income far exceed the extra I have to pay for gasoline. So half my investment profit does not go back to Exxon. Besides, gas prices are very near where they were 2 years ago, pre-Katrina. They are higher but not a whole lot considering. Just over the border from me in South Cacalaca it's $1.88 a gallon.

The 401(k) comment...are you suggesting we get rid of that tax deduction? Companies don't do it because it's tax deductible, they do it to attract good employees. That's how the free market works. And if companies didn't make a profit, how long do you think they would continue a 401(k) match?

01-02-2007, 06:21 PM	#27
cepAceryTem Join Date Oct 2005 Posts 517 Senior Member	I don't think that I should be afraid... I mean... what is there to fear on here? But when you have oil prices that high and the companies are profitting from it while the main source of our oil is coming from the same country where people are dying, it kinda drains the excitement from that excessive profit, except from the business and its investors of course. OPEC is only screwing the US consumer in raising the price of crude, but gives the company a higher profit margin because the prices are higher than what it used to be years ago. The problem is price inflation depletes the value of the dollar and so the prices rise, thus WE who put gas in our cars every week pay for it. There goes half your investments each year - back into EXxon/Mobile's profit, in which you only get a certain amount of share back. As far as 401K, Exxon is able to match contributions, like most companies, because it is tax deductable for them. Think of it as a clothing store that gives its employees a 20% discount on all clothing in the store. An employee gets his check and spends some money in the store. That store makes money back from the employee regardless. I assume you are referring to Iraq. While they have over 10% of the worlds known reserves (does that answer the questions as to why we find them strategically important and why we cannot leave them to our enemies?) they produce only about 2 million barrels a day and export a little more than half that amount. That's what SA has cut in their production over the last six months. That barely runs my petroleum sucking toys much less be our main source of oil. I'm not trying to be condescending (okay maybe a little but in a nice way) but thanks for the lesson on inflation. Here's the thing...if inflation is around 2.5% per year, but my investments make me over 10% per year, I'm way ahead of the game. And that inflation rate is for everything...not just gasoline. Couple that with the fact that I put significantly less gasoline in my toys than I make/invest, then my Exxon profits and income far exceed the extra I have to pay for gasoline. So half my investment profit does not go back to Exxon. Besides, gas prices are very near where they were 2 years ago, pre-Katrina. They are higher but not a whole lot considering. Just over the border from me in South Cacalaca it's $1.88 a gallon. The 401(k) comment...are you suggesting we get rid of that tax deduction? Companies don't do it because it's tax deductible, they do it to attract good employees. That's how the free market works. And if companies didn't make a profit, how long do you think they would continue a 401(k) match?
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