Letters to the editor: Nov. 17 - East Valley Tribune: Opinion

Letters to the editor: Nov. 17

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Posted: Sunday, November 16, 2008 6:00 pm | Updated: 10:35 pm, Fri Oct 7, 2011.

The recent decline in gas price did not happen because big oil company CEOs wanted to assist us. They did it to protect their bottom line.

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Gas prices down to boost demand

The recent decline in gas price did not happen because big oil company CEOs wanted to assist us. They did it to protect their bottom line.

Submit your letter to the editor

Because of the inflated prices, fewer miles are being driven and that means less gas is being sold at the pumps. That also means the gas station’s tanks do not need to be refilled as often. That trickles back to the big oil companies’ storage tanks that are at capacity. The tanker-ships that transport the fuel have no place to empty their cargo, which leads back to the main concern of big oil companies. Because of the accepted method of purchasing oil from the producers or what is known as “spot pricing,” these giants have to commit to oil supply based on projective movement or needs. Because of the inflated price, we travel out of necessity. The price for a gallon was reduced by pennies to stimulate gas consumption. It was done to correct big oil companies’ supply problems, period.

What can I do? There is one power greater than a monopoly, government, big oil company or any business. That is you, me and the rest of us “buyers.” We determine if a company is successful or fails by our patronage. Continue to use your car out of necessity. Reframe for a minimum two months, and watch these giants squirm without cash flow and fixed obligations to satisfy. Do you want to see prices really come down? Do you want to see gas at less than a buck a gallon? An organized buyer movement would control the cost of oil, medicine, food, utility and every other cost that is related to living.

Until our leaders in Washington generate competition instead of creating monopolies, we need to act as organized buyers and protect ourselves.



Don’t bail out auto lenders

I have been in the automobile business all my life. The used-car dealership I run has been selling and financing cars for more 50 years. I understand that the term of the loan has to be long enough for the payment to be affordable, yet short enough to attain an equity position when the customer wants to trade and before the car completely depreciates.

I watched in disgust as the mortgage bailout bill was passed. This bill was proposed by most of the same people who had helped create the mortgage mess. I had wondered when the automobile lenders would try to arrange their own bailout. These lenders knew they were cutting their own throat. Most people want to get a new car every two to three years. A car will typically lose around half of its value in three to four years. Most car loans are five to six years and are usually made with a small down payment. When the typical new car buyer drives his car off the showroom floor he owes $4,000 to $5,000 more than it is worth. This means that when the customer wants to trade up, he owes more than the car is worth. When he wants to trade, the difference between what the car is worth and what is owed is added into his next car loan, starting a vicious cycle.

The captive auto lenders have gone along with this in order to help sell the product, even though they know a lot of these loans will blow up in their faces. I would believe this is the root of the auto lenders’ problem, a problem that they foresaw, helped create, and did nothing about. Why do they deserve the government’s help and support?




They’ll come for you next

Proposition 102 passed, and the definition of marriage has been “protected.” The world has been “saved.” Theology has been dictated into law, and the First Amendment of the United States Constitution has been eroded. Individual liberties have been taken, under the banner of “saving” us. From whom will you take next?



No miracles here

If people find themselves in a bad situation, they will do something to change it, like voting in the election. A potential leader who promises change can therefore count on a large following if he appears to be trustworthy. But it is a big question how much can actually be changed — and changed for the better. How will people react if the overall problems cannot be brought under control — at least not speedily — and their personal livelihoods will be adversely affected by all this? Does anybody really think President-elect Barack Obama will be able to perform miracles?

And does anyone believe in the biggest miracle of them all, namely that our esteemed representatives in Congress and in the Senate will set a shining example of selflessness and forgo for quite a while their perks and automatic wage increases, so that all this money can be used for those who are most in need of help? If the denizens of Washington cannot let go of their greed, what right do they have to expect sacrifices from the rest of us? So far I have not observed a single representative giving any indication that he or she can think outside of the I-me-myself box when it comes down to the nitty-gritty. Quite a few of them are millionaires who would not need any money at all out of the taxpayers’ pockets.



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