Senate Democratic Leader Calls for Transparent Fuel-Savings Policy for New York State
May 8, 2008
(Albany, N.Y.) Senate Democratic Leader Malcolm A. Smith (D-St. Albans), supported a controversial bill to eliminate the gasoline tax as prices at the pump hit a record $4 per gallon in some parts of the state. Smith said that while the legislation was “not perfect, any relief we can provide for families was important.”
“The high gasoline costs continue to affect all New Yorkers,” said Senator Smith. “The bill being proposed is truly bigger than your typical partisan politics. I support this bill, which sends a message to my constituents that Albany understands their concerns, but I have some serious concerns with the bill, especially the lack of transparency.”
The bill (S7594-B) would save New Yorkers 32 cent per gallon and eliminate the New York State taxes on gasoline from Memorial Day weekend through Labor Day. Smith said that the bill passed with a vote of 48 to 15, did not have mechanisms to ensure consumers would reap the benefits of the state tax suspension.
Senator Smith challenged the majority’s proposed legislation as being fiscally irresponsible. Implementing this bill would cause the state to incur an additional $500 million deficit. Still, Senator Smith said that he understood that families and small business owners needed help during these tough fiscal times.
“Gas tax relief sounds good at face value, but the reality is we will have to find a way to pay for it,” Smith said. “We are looking at ways that we can provide relief for consumers but also keep the state’s finances on track. While the budget is balanced this year, budget projects the next fiscal year show a multi-billion deficit. That is something we all must keep in mind.”
The legislation passed included an anti-price gouging clause similar to the failed cap issued in 2006. Smith said that his conference was split down the middle over the issue of whether to support the controversial tax.
Senate Energy & Telecom Committee Ranking Member, Senator Kevin Parker (D-Brooklyn), said: “The proposed gas tax relief plan is short-sighted and ultimately won’t work. The money intended for state highway infrastructures to pay for roadwork, bridge construction, repairs and maintenance jobs would suffer. Instead, we ought to encourage alternative energy vehicles and use of public transportation.”
Key concerns were raised by Smith, Deputy Democratic Leader Jeff Klein (D-Bronx), and several Democratic Senators—Tom Duane (D-Manhattan), Ruth Hassell-Thompson (D-Bronx), Eric Schneiderman (D-Manhattan), Darrel Aubertine (D-Cape Vincent), Liz Krueger (D-Manhattan), William Stachowski (D-Buffalo), Martin Connor (D-Manhattan), and Kevin Parker (D-Brooklyn).
Smith said loss of state revenues and the lack of anti-price gouging language in the legislation were just some of the concerns. He added that past studies on gasoline rebates have shown they do not benefit the state and/or consumers.
“I do support this bill, but it’s unfortunate that Senators on both sides of the aisle were not asked for their input on this legislation–another example of the lack of transparency in Albany,” said Senator Stachowski. That being said, I’m hopeful that my constituents do in fact realize the significant savings at the pump that this legislation promises, because they certainly need it.”
The recently passed Senate bill will likely be a one-house bill since the Assembly has already signaled it would not support the plan.
Senator Smith concluded: “In the perfect world, the Democratic Conference would have had the opportunity to submit healthy energy alternatives to address the rising gasoline costs, however, the majority has instead decided to pass a bill that directly addresses the concerns of their respective districts. This issue of equal concern should have been a catalyst for reform.”
Cheyenne Diner To Go… Red Hook, Brooklyn
April 22, 2008
(New York, N.Y.) The architecturally & culturally significant Cheyenne Diner (411 9th Ave at 33rd St) has been purchased, and will gain a new lease on life when transported to Red Hook, Brooklyn. A contract has been signed between property owner George Papas and its new owner, Mike O’Connell of O’C Construction, son of influential Red Hook developer, Greg O’Connell.
Preservationist Michael Perlman of Queens, who founded the Committee To Save The Moondance Diner in spring 2007, along with fellow Preservationist Kyle Supley of Brooklyn, have spared the Cheyenne Diner from oblivion, after sparing the Moondance last summer. Michael Perlman of the Committee To Save The Cheyenne Diner presented a proposal to property owner George Papas (owner of nearby Skylight Diner, 402 W 34th St, & developer for Cheyenne property) on closing day, Sun, Apr 6th, and effectively convinced him to work together. A 9-story condo is slated to rise on premise, which marked the end of the diner’s 68-year run for its Manhattan site.
Perlman states “It is rewarding that the Cheyenne will gain a new lease on life in Red Hook, Brooklyn, and will contribute to the appeal of an up & coming neighborhood. Keeping it within the 5 boroughs, especially in a time when NYC is losing its history, emphasizes how progress can be in the ideal sense. We take pride that Papas was sensitive to our proposal & extend our thanks, and also thank Mike O’Connell for taking on a noble cause. We proudly serve as a liaison from ‘moving day’ to its reopening and future.”
When put up for sale on the 10th of April for $7900, with the necessity of rigging and lot acquisition costs in mind, Committee To Save The Cheyenne received notification from 23 potential buyers, some as far as IN, OH, & WY. While the Cheyenne potentially could have landed a good home out of state, many patrons prayed that a NY-based buyer would reach out, so it can ideally remain closer to its roots than the Moondance Diner in WY. George Papas states “I’m really, really happy the Cheyenne’s not being demolished, and will stay in NY.” In the short-term, a rigger will be enlisted and permits will be secured. In the long-term, O’Connell plans on restoring the diner to its ‘40 splendor, and Perlman feels it will be great once he polishes up that gem, so patrons can experience the Cheyenne as it was initially conceived.
The Cheyenne Diner is a highlight in terms of its diverse patronage including celebs i.e. Jerry Lewis & David Letterman, & since it’s the last streamlined railway car-inspired diner in Mid-Manhattan, & a scarcity borough-wide. It was pre-assembled by Paramount in 1940, and known as the Market Diner through ’86 after the popular chain. It retains a majority of its original &/or distinctive elements. The streamlined façade features vertical and horizontal stainless steel securing bowed colorful enamel panels, wrap-around windows, a curved entryway with glass block, & a reverse channel illuminated neon sign. The interior features a streamlined barrel roof, counter & stools, & Indian tribal coins. The Cheyenne was recently granted 1st prize on NYC-Architecture.com’s “Top 10 NY Diners/Restaurants. Spiros Kasimis was the 18-year Cheyenne tenant.
Perlman explains: “Diners are amongst the ‘ultimate public institutions’ which harbor countless memories and bridge the generations. During the 30’s - 60’s eras, freestanding diners numerously dotted NYC’s 5 boroughs, and brought together individuals of various occupations in a cozy & striking ambiance. Today, they are becoming an endangered species at an alarming rate, and their loss is often most heartfelt. It is essential to preserve & reuse all remaining classic freestanding diners.”
NYC Diner Preservation Record
- Sam Chinita housed in freestanding diner (8th Ave & 19th St), demolished 2000
- River Diner (11th Ave & 37th St), demolished Mar 2004
- Lunchbox Diner (357 West St), restored in 2002, but closed & remains abandoned
- Munson Diner (11th Ave & 49th St) transported to the Catskills in 2005
- Moondance Diner (80 6th Ave) transported to LaBarge, WY in Aug 2007 & reopens in June 2008
- Staten Island’s Victory Diner transported in Aug 2007 to SI’s Midland Beach Promenade & reopens in 2009
- Some icons holding onto their own: NYC’s Empire Diner (10th Ave & 22nd St), jet-age Market Diner (11th Ave & 43rd St) reopens this June, Air Line Diner/currently Jackson Hole (Astoria Blvd & 70th St), Square Diner (33 Leonard St near Varick St & W Broadway).
Cheyenne Diner May 2007 day scenes, Courtesy of Preservationist Michael Perlman:
http://flickr.com/photos/8095451@N08/sets/72157604354225329/
Cheyenne Diner night scenes & memorabilia, courtesy of Jeremiah Moss of Jeremiah’s Vanishing NY (http://vanishingnewyork.blogspot.com/)
http://www.flickr.com/photos/11205114@N03/tags/cheyenne
’83 Cheyenne as Market Diner, courtesy of roadside photographer Larry Cultrera of Society for Commercial Archeology & Diner Hotline (http://dinerhotline.wordpress.com/about/):
http://flickr.com/photos/8095451@N08/2383404269/
Dec ’79 Cheyenne as Market Diner, serigraph courtesy of photorealist John Baeder (www.johnbaeder.com):
http://flickr.com/photos/8095451@N08/2383392233/
1941 photo (pan & zoom 3rd in sequence), courtesy of NYPL:
###
Michael Perlman, Founder & Preservationist
Committee To Save The Moondance Diner Founder
(917) 446-7775
Las Vegas Real Estate Slump Represents Opportunity for Investors, Consumers, Long Islanders Looking to Relocate
April 21, 2008
(Las Vegas, N.V.) For anyone that might have been sleeping for the last year and a half, the Las Vegas real estate sector is part of a huge slump that has been affecting the economy across the nation. With NAI Horizon’s recent decision to close down their Las Vegas office, the reality of this situation has really began to hit home for Las Vegas Real Estate agents.
As of publication, according to the internet site GlobeSt, there are now reports that NAI has quickly reopened a smaller Las Vegas Office with fewer agents. Nevertheless, top local agents like Tony Sena of North American Realty of Nevada say colleagues are no doubt feeling the squeeze.
Optimistic, Sena stated “I know the market seems like a real wreck right now, but one man’s financial burden is another man’s opening shot at future wealth - which has always been historically true with any market; especially the real estate market.”
“Las Vegas is reaching close to rock bottom and opportunity is available to people that just wasn’t available a year ago in the real estate market. It is time that people that have the extra cash start looking at making purchases in the market because slumping markets have to rebound at some point in time.” said Sena.
Real estate companies in the United Kingdom predicted a slump a couple of years ago, and in advance, started saving some of their capital to make purchases when the slump hit its peak. They did so and now that the UK is showing signs of slowly coming out of the slump, these companies look like financial geniuses. The same opportunity appears to be available now in Las Vegas and it’s a great time for investors or anyone with the extra cash to take advantage of it.
The main reason that a move right now is considered a good one is the basic principle of rebounding. While the United States may be in the middle of an economic recession triggered by the collapse of the housing market, the fundamentals of the economy are strong. The United States remains the single most stable economy in the world and its GDP is still larger than all other nations combined. For these two reasons, the United States is going to rebound at some point and when it does people who moved into the market at the bottom will be the ones that benefit from real estate markets like the one in Las Vegas right now.
“Economies operate on a cycle of boom and bust, especially extremely open free markets like the ones that exist in the States. Those that get in at the end of the bust are the ones that make the most money and many analysts believe that one of those periods of opportunity is now hitting the Las Vegas real estate market.” said Sena.
GSA Focused on Stretching Tax Dollars
April 16, 2008
(Washington, D.C.) Bargains from Washington must seem rare. When was the last time you read a positive story about the federal bureaucracy? Or an agency that saved taxpayer dollars by improving programs or making tough business decisions?
Such agencies exist, and the U.S. General Services Administration (GSA) is among them. GSA was created in 1949 to handle the business of government. That is, GSA provides goods, services and workspace to all the other agencies at best value so they can concentrate on their core missions.
Maybe you’ve heard of GSA. If so, it’s doubtful you know that GSA practically supports itself. Less than 2 percent of GSA funding comes from Congress. Instead, GSA runs off the fees it charges for supplying all those goods and services to the other agencies. They don’t have to use GSA, but many choose to because buying in bulk enables us to offer steep discounts. Sound familiar?
The notion of a self-funding federal agency may not take the entire sting out of this April 15th, but it might help a little. So will this:
- GSA offers discount commercial airfares to feds on official business at an average savings of 67 percent below full commercial fares;
- GSA Fleet saves customers about 42 percent off of commercially available vehicle leasing options;
- GSA’s E-Travel initiative saved the Treasury Department $402,000 in travel management fees last year;
- The Federal Acquisition Institute saves taxpayers about 40 percent off commercial training prices by strategically sourcing training;
- Projects with GSA Public Buildings Service brokers are more than 13 percent below the real estate market. And thanks to increased efficiency, leasing fees to customer agencies last year declined from 8 to 7 percent;
- GSA’s automotive services obtain volume discounts for customers by consolidating motor vehicle acquisitions across the federal government, generating a 28 percent savings for customer agencies;
- And GSA-managed USA.gov and GobiernoUSA.gov, which provide easy access to official government information and services, were featured on TIME Magazine’s “sites we can’t live without.”
GSA has also been working steadily to: improve its emergency response capabilities, speed construction at badly congested U.S. land ports of entry; promote telework throughout the government; help “green” the government by highlighting environmentally-friendly products and services; and to expand federal contracting opportunities for small businesses.
This is not the proverbial tree in the forest, by the way. When agencies become more efficient and effective, taxpayers benefit, whether or not there’s a story in the press. That’s news worth knowing the month we all pay our taxes.
Lurita Doan is Administrator of the U.S. General Services Administration
Historic Cheyenne Diner for Sale at $7,900
April 9, 2008
(New York, N.Y.) Citywide Patrons, preservationists, & community groups are disheartened that the architecturally & culturally significant Cheyenne Diner (411 9th Ave at 33rd St) has officially closed its doors on Sun, Apr 6th. A 9-story condo is slated to rise on premise, marking the end of the diner’s 68-year run, but a movement is underway which may grant the Cheyenne a new lease on life. The asking price is $7,900 and the buyer is responsible for rigging and lot acquisition costs.
Preservationist Michael Perlman of Queens, who founded the Committee To Save The Moondance Diner in spring 2007, along with fellow Preservationist Kyle Supley of Brooklyn, are now campaigning to spare the Cheyenne Diner from oblivion, after sparing the Moondance last summer. Michael Perlman of the Committee To Save The Cheyenne Diner further discussed the proposal with property owner George Papas (owner of nearby Skylight Diner, 402 W 34th St, & developer for Cheyenne property) on Sun, Apr 6th, and effectively convinced him to work together. It will be a win-win scenario for all parties when Papas sells the Cheyenne Diner, and it is relocated.
Perlman has already received notification from potential buyers from Indiana & Ohio. While the Cheyenne can potentially land a good home out of state, many patrons are praying that a NY-based buyer will contact the Committee at unlockthevault@hotmail.com, so it can ideally remain closer to its roots than the Moondance Diner in WY. All information will be relayed to George Papas.
The Cheyenne Diner is a highlight in terms of its diverse patronage including celebs i.e. Jerry Lewis & David Letterman, & since it’s the last streamlined railway car-inspired diner in Mid-Manhattan, & a scarcity borough-wide. It was pre-assembled by Paramount in 1940, and known as the Market Diner through ’86 after the popular chain. It retains a majority of its original &/or distinctive elements. The streamlined façade features vertical and horizontal stainless steel securing bowed colorful enamel panels, wrap-around windows, a curved entryway with glass block, & a reverse channel illuminated neon sign. The interior features a streamlined barrel roof, counter & stools, & Indian tribal coins. The Cheyenne was recently granted 1st prize on NYC-Architecture.com’s “Top 10 NY Diners/Restaurants. Spiros Kasimis was the 18-year Cheyenne tenant.
Perlman explains: “Diners are amongst the ‘ultimate public institutions’ which harbor countless memories and bridge the generations. During the 30’s - 60’s eras, freestanding diners numerously dotted NYC’s 5 boroughs, and brought together individuals of various occupations in a cozy & striking ambiance. Today, they are becoming an endangered species at an alarming rate, and their loss is often most heartfelt. It is essential to preserve & reuse all remaining classic freestanding diners. Despite time constraints, we are committed to doing all we can for a noble cause.” The Committee’s consensus is that “A steady market for such nostalgic gems, coupled by the fact that they were manufactured to move; can ensure a victory for the Cheyenne Diner.”
NYC Diner Preservation Record
- Sam Chinita housed in freestanding diner (8th Ave & 19th St), demolished 2000
- River Diner (11th Ave & 37th St), demolished Mar 2004
- Lunchbox Diner (357 West St), restored in 2002, but closed & remains abandoned
- Munson Diner (11th Ave & 49th St) transported to the Catskills in 2005
- Moondance Diner (80 6th Ave) transported to LaBarge, WY in Aug 2007 & reopens in June 2008
- Staten Island’s Victory Diner transported in Aug 2007 to SI’s Midland Beach Promenade & reopens in 2009
- Some icons holding onto their own: NYC’s Empire Diner (10th Ave & 22nd St), jet-age Market Diner (11th Ave & 43rd St) reopens this June, Air Line Diner/currently Jackson Hole (Astoria Blvd & 70th St), Square Diner (33 Leonard St near Varick St & W Broadway).
Cheyenne Diner May 2007 day scenes, Courtesy of Preservationist Michael Perlman:
http://flickr.com/photos/8095451@N08/sets/72157604354225329/
Cheyenne Diner night scenes & memorabilia, Courtesy of Jeremiah Moss of Jeremiah’s Vanishing NY (http://vanishingnewyork.blogspot.com/)
http://www.flickr.com/photos/11205114@N03/tags/cheyenne
’83 Cheyenne as Market Diner, courtesy of roadside photographer Larry Cultrera of Society for Commercial Archeology & Diner Hotline (http://dinerhotline.wordpress.com/about/):
http://flickr.com/photos/8095451@N08/2383404269/
Dec ’79 Cheyenne as Market Diner, serigraph courtesy of photorealist John Baeder (www.johnbaeder.com):
http://flickr.com/photos/8095451@N08/2383392233/
###
Photo: The Cheyenne Diner, 33rd and 9th, closed on sunday april 6 — in business since 1930 — lost their lease to make room for condos http://www.flickr.com/photos/11205114@N03/tags/cheyenne
Fuina Puts Brookhaven on Notice, Press Conference Announced
April 2, 2008
(Patchogue, N.Y.) – Falsely accused illegal landlord and Police Detective Paul Fuina will be in Suffolk County Sixth District Court again on April 3 at 10 a.m. to answer the trumped up charges, and he will hold a press conference in the courtyard to explain his anger over the violation of his constitutional rights by the Town of Brookhaven and to explain why he has taken the first step toward suing the town, the assistant town attorney, and other town officials.
Assistant Brookhaven Town Attorney Raymond Negron has decided that he does not have to respect the constitutional rights of members of the police force because he can use the police department to put the squeeze on them. He also figures that by accusing law enforcers of lawbreaking, he will cause them such embarrassment that they will do whatever they can to make the story go away.
But Negron has made a severe miscalculation in the case of Fuina.
Fuina knows that he has done nothing wrong, so he has joined a civil rights organization, The Coalition of Landlords, Homeowners & Merchants, Inc., which is helping him fight back. He has served Brookhaven and Negron with a notice of claim, which is the first step in filing a lawsuit against a municipality.
The notice of claim accuses Brookhaven, Negron, Town Supervisor Brian Foley, and the town board of conspiring to violate Fuina’s constitutional due process rights, overstepping the bounds created in Brookhaven’s own town code, making calls to Fuina’s police department to make false statements in order to embarrass him, making false statements to the media about facts and the law, malicious prosecution, perjury, abuse of office, abuse of power, and theft of Fuina’s bank records.
One of the false statements made by Negron is that Fuina owns the allegedly illegal rentals. As Negron has been informed, Fuina does not own the property. He is only being accused of owning the property because he is a police detective and is, therefore, vulnerable.
Fuina has already been dragged into court in the past over similar charges, about the same property. In that case, Suffolk Sixth District Court Judge G. Ann Spelman dismissed the charges because they were based on false statements made by Town Inspector Robert Incagliato. Now, Brookhaven officials are attempting to punish Fuina for standing up to them by attacking his standing as a police detective. Spearheaded by Negron, this has been Brookhaven’s recent tactic with members of law enforcement agencies.
But Fuina is up to the task of standing up for the rights of the police. It is bad enough that the police have to put their lives on the line to protect the people; it is asking too much for them to also have to put their constitutional rights on the line. If Negron’s unconstitutional activities are allowed to continue unchallenged, the result would be that people will be shy of joining or remaining on the police force. Obviously, that would be a tragedy.
On Thursday, April 3, at 10 a.m., Fuina will be in Suffolk County’s Sixth District Court, 150 West Main Street, Patchogue, New York, to defend himself against Brookhaven’s frivolous charges, and The Coalition of Landlords, Homeowners & Merchants, Inc. will be there to hold a press conference on Brookhaven’s mistreatment of members of Long Island’s police forces.
The Coalition of Landlords, Homeowners and Merchants, Inc. is the premier civil and property rights organization on Long Island. It is dedicated to fighting for the preservation of constitutional principles and property rights.
Date of Press Conference: Thursday, April 3 at 10 a.m.
Place of Press Conference: Suffolk County 6th District Court
150 West Main Street, Patchogue, New York
###
THE COALITION of LANDLORDS, HOMEOWNERS, & MERCHANTS, Inc.
“An organization of the People, for the Rights of the People”
28 East Main Street, Babylon, NY 11702
Phone: 631-376-2110
www.clhm.org
Photo: Suffolk County 6th District Court, 150 West Main Street, Patchogue, New York
Wall Street Differs On Monday Close
March 19, 2008
(Long Island, N.Y.) The collapse of Stern Bears Cos. which was widely considered as one of the top investment houses in the US bore heavily on Wall Street investors mind on Monday as evidenced by their hesitancy to conduct aggressive trading at the stock market.
Dow Jones industrials edged up a bit on Monday’s close as it gained 21.16 points or a 0.18 percent increase to finish with 11972.25 total points after it started the day losing by almost 200 points before staging a late rally to salvage a respectable advantage. Broader indexes Standard and Poor 500 fell 11.54 points for a 0.90 percent decline since previous day trading to end with 1,276.60 while NASDAQ composites was Monday’s biggest losers as it declined by 35.48 or 1.60 percent decrease to settle with 2,177.01.
“The market has absolutely no idea what’s going on,” said Dan Alpert who is a managing director for Westwood Capital. “Some people have accused them of whistling past the graveyard — I don’t think they even know where the graveyard is.”
On Sunday, backed by the government- JP Morgan Chase & Cos. announced its buy-out agreement with struggling investment company Stern Bears to takeover operations from the company for a measly $2 a share, a stunning decline since a year ago when Stern Bears commanded over $160 per shares of stocks. Federal reserves Chairman Ben Bernanke facilitated the “bail-out” of Stern Bears as a means of expressing the US government’s support for the struggling credit and loans industry. Also, the feds announced slashing down of interest rates to loans granted by government to lending houses by a quarter of a point to 3.25 percent.
In a statement released on Monday, Preside George W. Bush acknowledged current economic struggles in the US in saying, “One thing is for certain, we’re in challenging times, But another thing is for certain: We’ve taken strong, decisive action.” The President also pledged support to the country’s top economic leaders such as Henry Paulson and Ben Bernanke. “Our financial institutions are strong and our capital markets are functioning efficiently and effectively. They are showing the country and the world that the United States is on top of the situation. When need be, we’ll act decisively in a way that continues to bring order to financial markets,” Bush said.
Oil Finished At $110.04 A Barrel; US Dollar Weakens Further
March 14, 2008
(Long Island, N.Y.) Sweet and Crude oil deliveries for April this year settled at $110.04 a barrel on Thursday which is a 0.29 cents decline after setting a new all-time high the previous day at the New York Mercantile Exchange. Twelve of the last thirteen trading sessions yielded record high’s for oil futures deliveries.
On Wednesday, Oil prices surged to an all-time high of $110.33 a barrel on inflation adjusted rates but retreated yesterday after investors exposed initial fantasy on commodity trading rather than at the oil industry. Also factoring in for the decline was OPEC’s decision to throw off the US governments request for an increase in oil deliveries for next month.
“When there are no immediate supply side concerns that justify surging to new record everyday, some pullback is inevitable,” said Victor Shum, an energy analyst with Purvin & Gertz. “This is just part of the volatility of trading. In the near term, despite the fact that oil pricing is pulling farther from market fundamentals, this bull run could continue because of the expectation of further (Fed) interest rate cuts and continued weakening of the U.S. dollar,”
Experts surmise that the oil price ascent the last few months bear heavily on the declining amount of the US dollar against major currencies worldwide. As the dollar falls, Oil stocks which are bought and sold in US dollars become more attractive to international investors. On Friday, the US dollar hit another all-time low against the Euros as it fell at $1.5651 to a Euro.
“The dollar traders will be watching the release later today of the U.S. inflation number for February as an indicator of the Fed decision next Tuesday,” said Olivier Jakob, of Petromatrix in Switzerland. “What central banks decide next Tuesday should be more relevant to oil prices than any recent OPEC meetings.”
Gas Prices at the Pump Approache Record Highs
March 11, 2008
(Long Island, N.Y.) Prices at gas stations nationwide surged over 0.7 cents overnight to approach all-time high figures set on May of last year to finish at $3.222 a gallon or 0.005 cents off of the record which stands at $3.227 per gallon, a figure experts believe could easily be surpassed by a day’s start of business.
According to AAA records and Oil Price Information Services, May of last year holds the record as the highest nationwide average pump price per gallon in history with high demands for oil especially during summer and spring time added with supply outages being the key factors for the increase in Oil prices back then. Estimates by both companies have gas price at the $4 per gallon level by summer this year which would hold true to the general consensus by the public gathered in a recent survey conducted nationwide for consumers.
Meanwhile at the New York Mercantile Exchange, Sweet and Crude Oil prices jumped to another milestone in setting a new high for inflation-adjusted rates with a single day increase of $2.75 for April deliveries to close the day with a record $107.90 per barrel. It also set a new in-day trading high after it reached $108.21 after noontime before it settled down to its closing figure. The increase in oil prices pried investors away from Wall Street which contributed to the struggling stock market.
The sharp increase in Oil Prices both at pump stations and at the broader markets are determined by several factors including scarce supply after OPEC declined a US-government request to increase the export of Oil to the country. Another factor was the much publicized squabble between US and the Venezuelan government over the frozen assets Venezuela incurred after it violated rules while the current mayhem at Nigeria which is one of the biggest oil-producing regions in Africa contribute to the increase in oil price.
Abysmal Showing at Wall Street
March 7, 2008
(Long Island, N.Y.) Wall Street absorbed heavy losses yesterday as investor’s initial fears of dreadful economic figures translated into reality earlier this week to help drive off activity trading and keep optimism in check.
Several determining forces handed the Stock Market a devastating blow which included surging numbers for home foreclosures threatening to break record levels during the last quarter of 2007 which the Mortgage and Bankers Association reported last Wednesday. Another factor heavily affecting Wall Street are concerns coming out from the Credit industry involving Thornburg Mortgage Inc. and a Carlyle Group bond fund after it revealed bad investments backed by mortgages. Both companies failed to meet marginal figures, which are payments to guarantee much larger future debt or investments.
“I think these are near-term, unfortunate events that if they had the luxury of time and capital they could probably weather but unfortunately with this leverage-based system we have, time is a very expensive luxury,” Jack Ablin, chief investment officer at Harris Private Bank in Chicago, said in reference to the difficulties at Thornburg and Carlyle.
The Dow Jones Industrial soaked up the most damage after it conceded majority of their gains earlier in the week in losing 214.60 points on Thursday’s trading which is a mind-numbing 1.75 percent decrease from the previous day to settle with 12040.39 points. Broader indexes Standard & Poor 500 and NASDAQ composites also experienced declines after S&P 500 lost 29.36 points or 2.20 percent lower to finish at 1,304.34 points while NASDAQ fell 52.31 points a 2.30 percent decrease and end with 2,220.50 points.
Meanwhile, Sweet and Crude Oil maintained above the $105 mark as it closed down at $105.47 a barrel on Thursday in the New York Mercantile Exchange. Earlier in the day, OPEC rejected a US government request to increase production after a surprising decline in US Oil supplies which drove oil prices surging further.
“There are expectations that the dollar will go lower, and that’s driving money into commodities,” said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. “Traders now have this mantra: sell the dollar and buy oil, or buy commodities.”
