Did You Know That Oil Prices Are Heading Downward -- Fast?

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gas pricesWhen gasoline prices began to spike earlier this year, the popular opinion was that oil prices would continue to climb into the peak summer travel season.

So much for popular opinion.

Crude oil futures have taken a hit lately, delivering an 8.6% slide to speculators over the past five trading days. On Tuesday, June crude settled at a three-month low, due in part to fears about Europe's financial crisis erupting into another economic setback and stifling global oil demand.

Obviously a sharp one-week drop isn't the last word on where oil prices are ultimately heading, but the news is likely to be good for your pocketbook.

How Much Cheaper Are We Talking?

After five weeks of surprising declines, the U.S. Energy Information Administration is revising its forecast for average gasoline prices during the summer driving period. The EIA is now targeting an average cost of just $3.79 a gallon. The original forecast called for an average of $3.95 per gallon.

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This is obviously welcome news to drivers, but it's still worth cheering about even if you don't have a car.

From food to clothing, how do you think merchandise makes its way to a store near you? Transportation costs are baked into the prices that you're paying as a consumer, and lower oil prices should help.

There are also many industries celebrating the recent decline in energy prices.

Retreating gasoline prices are good for hotel chains and amusement park operators, since drivers are less likely to put off summer road trips if gasoline isn't going through the roof.

Since jet fuel is a major component of an airline's operating costs, airlines often have to bump rates higher as fuel costs climb. The same works in reverse, although falling prices don't apply to those who bought their tickets earlier. Cruise lines also rely on oil, and dips in oil prices can turn a loser quarter into a profitable one.

Most consumers and companies agree that falling gas prices are good. They put more money in the wallet of the penny-pinching driver. The cheering isn't unanimous, though.

Not Everybody's Excited About Lower Gas Prices

ExxonMobil (XOM) -- the country's second most valuable company -- benefits from the higher prices as long as drivers don't cut back on their consumption. The same can be said for many of the energy producers.

General Motors (GM) is another company that also wouldn't mind higher fuel costs. It would help the automaker move more of its plug-in Chevy Volt cars, which have been hard sellers in recent months. Given the fuel efficiency of most newer cars, one can argue that automakers would benefit from folks trading in their older gas guzzlers as fuel prices inch higher.

However, at the end of the day, the cheering squad for lower fuel prices is larger and louder. Over the past few weeks, the consumer's been winning.

Longtime Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. Motley Fool newsletter services have recommended buying shares of General Motors and ExxonMobil.

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Source: http://www.dailyfinance.com/2012/05/09/did-you-know-that-oil-prices-are-heading-downward-fast/

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Andrew J. Bacevich, Part I

Bill Moyers sits down with history and international relations expert and former US Army Colonel Andrew J. Bacevich who identifies three major problems facing our democracy: the crises of economy, government and militarism, and calls for a redefinition of the American way of life. "Because of this preoccupation with the presidency," says Bacevich, "the president has become what we have instead of genuine politics, instead of genuine democracy." Respected across the political spectrum, Bacevich has contributed to The Nation, The American Conservative, Foreign Affairs, among others, and his latest book is The Limits of Power: The End of American Exceptionalism.

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Frontlines of Foreclosure

The JOURNAL profiles Steve Meacham, a Boston-based organizer who's trying to halt the tidal wave of evictions and foreclosures plaguing his community. Meacham works for an award-winning organization known as City Life/Vida Urbana, a group that's pioneered new strategies to help working people hold on to their homes in the face of intense pressure from banks.

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The 10 Richest Countries in the World

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The economic strength of nations is typically measured by Gross Domestic Product (GDP). By this measure, the U.S. is still No. 1 and when China passed Japan in August to become the second wealthiest country, it was big news.

However, GDP doesn't tell you how much income -- the money that actually ends up in people's pockets -- is produced in a given country. To understand which nation has the most income, 24/7 Wall St. used Gross National Income (GNI) as a measure. We ranked the ten countries with the highest GNI per capita using the most recent data available from the World Bank. To factor in a nation's quality of life, we collected information on literacy, unemployment, and percentage of GDP spent on education. Sources include the World Bank, the United Nations Educational, Scientific, and Cultural Organization, (UNESCO), and the CIA World Factbook.

Our methodology makes for a surprising list. Very few are superpowers. These are countries where there is either a small group of extremely wealthy people (Kuwait and Brunei, for example), or where the government heavily influences the distribution of income (such as Norway and the Netherlands).The following the 24/7 Wall St. list of the ten richest countries in the world:

Luxembourg
Gross National Income Per Capita: $58,810
Literacy Rate: 99%
Unemployment Rate: 4.8%
Percent of GDP Spent on Education: 3.7%

This tiny, landlocked nation about the size of Rhode Island is bordered by France, Germany, and Belgium. Luxembourg's location near major powers on the continent, along with its educational system, which requires fluency in French and German, has made it one of Europe's premier investment centers. The Duke of Luxembourg plans to provide the country with ultra-high bandwidth cable service within the next three years, which will foster development of a sophisticated digital economy.

Norway
GNI: $55,190
Literacy Rate: 100%
Unemployment Rate: 1.7%
Percent of GDP Spent on Education: 6.7%

Norway has profited handsomely since it began receiving significant sums of money from petroleum exports in the 1970s. Thanks to the government's income from oil and natural gas and an abundance of jobs in the technology and telecommunications sector, Norway has been able to meaningfully fund social programs and education without burdensome taxes on business. The government's heavy spending on social programs has resulted in a highly literate, well-educated and affluent population.

Kuwait
GNI: $53,390
Literacy Rate: 94%
Unemployment Rate: 1.3%
Percent of GDP Spent on Education: 3.8%

This Arab nation, which is smaller than New Jersey, contains roughly 9% of the world's oil reserves. Crude makes up 90% of its exports. Unlike many of its oil-rich neighbors, it has recently remained politically stable, thanks in part to its largely homogeneous and relatively small population. It was the first Middle Eastern country to have a democratically elected parliament. Relative to other countries in the Gulf region, Kuwaiti citizens are highly educated and literate. More than 98% of the population is employed, either in oil production or through Kuwait's export businesses, which focus on raw goods such as cement and brick. The government also supports public works projects in order to to keep unemployment low.

Macau
GNI: $52,410
Literacy Rate: 93%
Unemployment Rate: 3%
Percent of GDP Spent on Education: 2.2%

This Special Administrative Region within the People's Republic of China is almost entirely composed of a single harbor on the Southeast shore. The region operates as a highly productive seaport and is a heavy exporter of textiles and other manufactured goods. By far, however, the main reason for Macau's wealthy citizenry and low unemployment is China's 2006 decision to relax travel restrictions to the port. Macau capitalized on this by reinvesting in its successful gambling sector, transforming it into one of the most prosperous places in the world. By the end of 2006, the country's gambling revenue surpassed that of Las Vegas. Most of Macau's citizens are either employed by casinos, hotels, or are hired to construct new resorts to meet the ever-growing influx of international tourists.

Brunei
GNI: $50,920
Literacy Rate: 95%
Unemployment Rate: 3.7%
Percent of GDP Spent on Education: 3.7%

At one time, Brunei's Sultan was the wealthiest man in the world. Like Norway and Kuwait, the chief sources of the government's revenue is crude oil and liquefied petroleum exports. However, there are concerns that the depletion of oil reserves will eventually damage the country's high standard of living. Brunei's government is attempting to diversify the economy by expanding into the eco-tourism and agricultural export businesses. For now, however, Brunei citizens maintain healthy incomes because of the oil, liquid petroleum and service industries, with over 60% employed in these fields. A 30% income tax ensures that most needs are met, and this allows the Government to provide free education at least through high school and, often through university.

Singapore
GNI: $50,780
Literacy Rate: 95%
Unemployment Rate: 3.95%
Percent of GDP Spent on Education: 2.2%

Like several other nations on this list, Singapore's government tightly controls the country's economy. This has worked out well for its citizens, thanks to the nation's leadership in the electronics and pharmaceutical industries. Singapore's government spends heavily on public welfare and services. In many ways, Singapore's budget agenda mirrors Luxembourg's. It devotes particular attention to education, as it promotes itself as a friendly and accessible port of international trade.

United States
GNI: $46,760
Literacy Rate: 99%
Unemployment Rate: 9.6%
Percent of GDP Spent on Education: 5.6%

Some may be surprised that the U.S. isn't higher on our list of wealthiest countries, but considering its size and diversity, it is surprising it makes it on at all. The United States has an unemployment rate of 9.6%, double that of the Luxembourg, the next highest. Most other countries on the list have governments which tightly control their economies or spend heavily on social welfare programs. The United States is a capitalist economy that spends fairly little on social programs as a percent of GDP. Though the US spends a significant amount of its budget on education relative to other countries on this list, that is largely due to inefficiencies arising from the decentralized nature of its public school system. There is growing disparity in wealth in the U.S., but the relatively large salaries of country's middle and upper-middle class and wealthy drives up the country's GNI, allowing it to make the cut.

Hong Kong
GNI: $44,090
Literacy Rate: 94.6%
Unemployment Rate: 3.6%
Percent of GDP Spent on Education: 3.3%

Hong Kong, the other special Chinese Special Administrative Region, along with Macau, is unique because it is one of the few places in the world that relies heavily on re-exporting goods. China uses the port city as an intermediary for much of its trade with the world. Hong Kong's citizens have benefited from the economy's transition from an industrial exporter to a center of international banking. The Hong Kong government is pro free trade, but also spends heavily on general welfare and education for its population.

Switzerland
GNI: :$43,440
Literacy Rate: 99%
Unemployment Rate: 4%
Percent of GDP Spent on Education: 5.3%

The Swiss people benefit from the country's business-friendly policies. This has allowed the country to become a major center for international banking and investment. Extremely lenient tax policies have made Switzerland a haven for large numbers of wealthy businessmen and retirees. A prosperous service sector has grown to meet the demands of these groups. The Swiss government spends a considerable 5% of GDP on education. The country also has sizable exports of machinery and chemicals.

Netherlands
GNI: $40,940
Literacy Rate: 99%
Unemployment Rate: 3%
Percent of GDP Spent on Education: 5.5%

The government of the Netherlands plays a very active role in maintaining a high standard of living for its citizens. Unemployment is low because thousands of people have simply dropped out of the labor force and are living on government benefits. The Netherlands is a model of liberal social policy and laissez-faire economics. Holland has a free market economy, supporting strong petroleum refining and electrical machinery industries. Socially liberal policies have resulted in a booming drug and sex tourism sector.

As this list shows, a country doesn't have to be an economic giant to be among the richest countries in the world. It just has to have either a government that makes sure wealth is distributed broadly across the population or a small population that includes some extremely wealthy people.

With reporting and research from Michael B. Sauter

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Source: http://www.dailyfinance.com/2010/11/19/the-10-richest-countries-in-the-world/

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Bank of England Governor Sir Mervyn King faces MPs: live

Sir Mervyn King tells Treasury Committee concerns about 'misreporting of Libor' in 2008 must not be confused with 'evidence of misreporting', which was only uncovered after a three-year investigation.

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Photo of the Day: Oil Ashore

Krista Kjellman Schmidt

A BP cleanup crew shovels oil from a beach on May 24, 2010, at Port Fourchon, La. (John Moore/Getty Images)

With its one-month anniversary passed, the Gulf oil spill has reached the shoreline, and it isn't pretty. Today's photo depicts the onshore efforts of a BP cleanup crew as it took shovels and garbage bags to the shores of Port Fourchon, La. BP CEO Tony Hayward visited the beach on Monday with reporters in tow and said BP was committed to cleaning up "every last drop." But with 32 national wildlife refuges at risk of being affected by the BP oil spill, officials from Texas to Florida are worried that cleanup, if possible, may come too late.

Check out our slideshow of photos from the Gulf oil spill, which we update daily.

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Tax Treatment of Restricted Stock Unit (RSU) Benefits

If you work for a large company, chances are Employee Stock Option benefits (ESOPs) have been replaced with Restricted Stock Units (RSUs). There are significant differences between tax treatment of ESOPs and RSUs. In this post, we will look at how RSUs are taxed for Canadian residents. Restricted Stock Units are simply a promise to [...]

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Cleanup Boats Sent to Shore After More Workers Get Sick

Ryan Knutson

Operations continue to mitigate the effects of the BP oil spill on May 23, 2010, but on Thursday Deepwater Horizon Response ordered all commercial cleanup vessels back to shore after workers became ill. (U.S. Coast Guard photo by Lt. Cmdr. Rob Wyman)

This post has been updated.

All 125 commercial vessels working to clean up the oil spill in the Gulf of Mexico have been ordered back to shore temporarily after four workers on three separate vessels became ill, according to a Deepwater Horizon Response press release.

It's unclear whether the crew members were working with chemical oil dispersants, which have been criticized for their toxicity. Our calls to officials in the region have not yet been returned.

The sick workers said they had headaches and chest pain, and were nauseated and dizzy. One was taken by helicopter to a hospital in Marrero, La., another was taken by boat and two were taken in an ambulance, according to the press release.

The current symptoms mirror those of other fishermen who were hired by BP to help clean up the spill, as we pointed out earlier this week. The dispersants BP is using to break up the oil have many health risks of their own. Earlier this month, the EPA told BP to stop using the chemicals and to switch to something else, but BP says there is no better alternative.

Update, 5/27:

Normal.dotm 0 0 1 102 584 Pro Publica 4 1 717 12.0 0 false 18 pt 18 pt 0 0 false false false According to Captain Meredith Austin, the Coast Guard deputy incident commander, controlled burns were being executed and aerial dispersants were being used in the vicinity of the affected workers, but no dispersants were being sprayed within 50 miles of the workers.

"It's important to keep in mind there are other factors which may potentially cause these symptoms," Austin told reporters on a conference call this evening. She named the smell of petroleum, heat and fatigue as possible causes for the symptoms.

Workers were not given respiratory protection equipment because according to Austin, prior air sampling performed in the area concluded that the level of chemical exposure was permissible.

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