Greenspan seems to have confidence that Oil Prices may come down from all time highs as inventories increase and demand slows.
http://money.cnn.com/2005/04/05/news/economy/greenspan_oil.reut/index.htm?cnn=yes
while I'll leave it to other to comment on some of his comments this one stuck out.
"He said vehicles on U.S. highways currently consume about 11 percent of total world energy production."
Folks 11% may seem like a low number if you where lets say talking about a history paper but 11% of all the worlds energy production.....that doesn't even acount for the nergy needed to build all of those cars. I wonder what the worlds thinks of the US (5% of the population) using up 11% of the world energy production so that they can drive a hummer.
The thing thats bugs me about this the most is that Bush has just decided to stop funding Amtrak...maybe we can get it up to 15%.
More below the fold
Some other statments I'd Like to take issue with.
"Speaking via satellite from Washington to an oil refiners' conference in San Antonio, Greenspan said recent record high oil prices had slowed oil-demand growth, although "only modestly"
Good to see he was in front of a non-partisan crowd.
"Of crucial importance to lowering long-term demand -- and helping build oil stockpiles -- is whether Americans will choose to buy lighter, more fuel-efficient vehicles, Greenspan said. "
Amtrak? Standards for SUV's......
He also expressed concern about a lack of world crude oil refining capacity, calling it "worrisome."
"The Fed chief said energy market developments would "remain central" to the long-run health of the U.S. economy, but as prices increase the economy's dependence on energy would lessen"
Has the government done anything to lessen our dependance on oil ANWR?
Anyway, what do you think am i crazy or is Greenspan saying that pure market forces will settle prices in the long run....my questions is what damage will be done in the meen time and how much can I believe the guy thats leaving in a year?
Also....very important was he speaking for himself or as the chair of the federal reserve?