Tim Russert Apparently Flunked Economics

• May 4, 2006

An exchange between Meet The Press’ Tim Russert and Secretary Bodman:

MR. RUSSERT: Mr. Secretary, if, if demand is up but supply is down, why are the profits so high?
MR. BODMAN: For that reason.
MR. RUSSERT: No, think about that.
MR. BODMAN: You know?
MR. RUSSERT: Play it out.
MR. BODMAN: Demand is up.
MR. RUSSERT: Correct.
MR. BODMAN: Right?
MR. RUSSERT: Right.
MR. BODMAN: So you’ve got more demand, you’re going to force price up.
You’ve got, you’ve got limited supply, and you’re going to have…
MR. RUSSERT: But that’s a decision by the oil companies.
MR. BODMAN: No, it is not. That is a decision—those are—oil is traded every minute of every day, and it’s traded basically 24-by-seven. And it’s, it is determined in marketplaces in New York and London and Tokyo, all over the world. That’s the, the—the oil companies do not determine the price of oil; the producers determine the price of oil.
MR. RUSSERT: They determine, they determine, help determine the price at the pump. And if the, if their profits are going up, they have made a decision to add on the cost at the pump at such a level to guarantee higher profits.

What a fool.
Video at the link.

Tags: Domestic Issues, Fighting Sioux Nickname, JD Donaghe, John Hoeven, Red River Flood

http://Array Tom_with_a_Dream

I stand corrected.  I was hoping the author would have better recollection than I. 

But I will sleep like a champ tonight knowing that at least I took away from your post the content, if not the attribution or the date…    Thanks for the ammo.
http://sayanythingblog.com/ Seth Yantiss

Tom, I did a while back.

OMG! Gas Breaks New Record!!!
http://www.freerepublicans.com/ FreeRepublicans.com

The look on Jim Cramer’s face is classic.

WTF are you talking about Tim?

I bet he was biting his tongue say "damnit why do I work for NBC?"

 
Tom_with_a_Dream

I am a sponge for information that refutes the 30-second-soundbyte mentality we live in.  Again, thanks.
diane

From another thread I posted it in:

http://www.msnbc.msn.com/id/12400801/

"Report shows gasoline demand is flat, motor fuel supply growing"

More at the link.  Spin, manipulation, press releases used to cause panic, cause speculation, more spin….and so it goes

FACT:  Gas prices at all time high in U.S.   Citizens ticked.

 
robert108

Again with the monomania.
Tom_with_a_Dream

Rob, could you confirm if you’ve ever posted about the inflation-adjusted price of gas?  Seems to me that you did 18-24 months ago, when I started reading you…

I found this real quick at InflationData.com, any takers?  Diane?  Should I number it? 

(I am not disagreeing that Russert ate it, big time.  Reminded me of Laurel and Hardy.  "For that reason.  Right!")   
robert108

The demand is flat in the US;  worldwide demand is up, especially in India and China.  It’s necessary to tell the whole truth, not just the part that suits your agenda.
robert108

Back on topic: Russert, like most lefties, is economics-challenged, having believed Karl Marx’s fantasies.
diane

"It’s necessary to tell the whole truth, not just the part that suits your agenda."

 

Would you pass on that pearl of wisdom to Bush?
http://sayanythingblog.com/ Seth Yantiss

  Glad I could help…   Though after looking over the post, I can see many, many improvements.  I am impressed that you recalled reading that!
http://www.bikebubba.blogspot.com/ Robert Perry

Tom, well said about the soundbite mentality we have now.  If only Bodman had clarified that when the market price is $75, that’s the price oil products go for, and those companies with their own reserves make a profit–the difference between their cost and the market price.

In other words, if you own an oil well that costs you $10/barrel, you’re in fat city when the market price hits $75/barrel.  Like the others, though, I’d guess that such analysis is beyond Mr. Russert.

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Tim Russert Apparently Flunked Economics

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