June 30, 2008
Adjusting to $3.37 per Gallon Gas in China
Adjusting to $7 per Gallon Gas in America (PDF)
“Compare driving behavior in the United Kingdom with driving behavior in the United States. Over 90% of American households use a car to get to work, while over 60% of US households own two cars or more. By comparison, just 60% of British households use a car to get to work, while less than 25% own two or more cars. Moreover, Americans drive their cars more. They make four trips a day while Brits make two. And last, some 30% of Brits don’t even own a car. In the US less than 10% of households don’t own a car.”
All these guys jumping on the $200 a barrel bandwagon brings out the skeptic in me, but the trend is their friend and I won’t call a top in crude earl until I see a turn (the same turn everyone else will see).
I can report that the recent 17% gas price hike (to $3.37 a gallon) here in Beijing has done absolutely zilch to curb demand, and I remain stalled in bumper to bumper traffic every day.
On a purchasing power parity basis, $3.37 a gallon is a fortune to the average Chinese, but as I’ve noted again and again never think of the “average” Chinese. There are now at least 100 50 million Chinese who live like Americans: they have big houses/apartments, big cars, plasma TVs, big fridges, washer-dryers and they certainly don’t bat an eye when paying $3.37 at the pump.
Only one in five urban households in China owns a car — stay long Energies.
July 1st, 2008 at 8:10 am
nah, you’re rright - few even question $200/bbl crude and only argue about when.. PB is dead ahead.
July 1st, 2008 at 8:43 am
3.37! Sounds cheap. How much including state subsidy?
I want to subscribe at the end of this bear market-let me know :)
July 1st, 2008 at 9:58 am
@QQQ: Is PB short for Pullback? I’m not up on my technical acronyms. :)
@Hudson: That is the subsidized price. Subscribe now and only look at the short ideas. :)
July 1st, 2008 at 12:00 pm
We need a savior to protect us
July 1st, 2008 at 2:34 pm
Rick: Photoshop is a terrible thing. :)
July 2nd, 2008 at 4:04 am
whoa — shines an entirely new light on “Dynamic Duo”… somehow we have to keep Rick away from CM’s Jarah pics :>)
July 2nd, 2008 at 12:00 pm
PB = Pullback
BO = Breakout
Natty looking strong too these days.
July 2nd, 2008 at 5:16 pm
One of the things that I find most difficult is to have a method that allows me to search between (for example S&P 500 shares) an index and analyse only a few (at least not 100 or 200) stocks. How many do you see each day? Do you have any sugestion?
July 2nd, 2008 at 10:13 pm
Renato: You mean looking for set-ups? The Box looks through 500 every day and only finds a handful (usually) to look at more closely. I suggest you try to automate whatever it is you’re looking for so the software can do the heavy lifting.