US Smacked by the Invisible Hand

Feds now effectively the only lender in town

(NEWSER) - The teetering of Fannie Mae and Freddie Mac has underscored a major shift in US finance, writes Peter S. Goodman in the New York Times—once simply another guarantor, the government has effectively become the only lender in town "for millions of Americans engaged in the largest transactions of their lives." As commercial banks flee the market and credit dries up, Fannie and Freddie are now buying two-thirds of new mortgages. More»

Sure, policy affects things ... eventually

(NEWSER) - As gas prices rise, President Obama's approval rating falls , which makes sense, because those painful numbers at the pump are all his fault, right? Wrong, say oil experts and economists. The Washington Post breaks down their arguments:

• Policy: It definitely affects things, but it takes a long time for that to happen. Cars can take a decade to turn over, for instance, so tightening fuel efficiency rules doesn't kick in immediately. One expert notes that legislation George W. Bush signed in 2007 is helping stop the "current situation from getting worse."

Oil demand keeps drills humming in Gulf of Mexico

(NEWSER) - It's been almost two years since the Deepwater Horizon explosion, and deepwater drilling is back. With a year-long moratorium over, BP and other companies are intensifying their operations in the Gulf of Mexico, and production there will soon exceed its pre-accident highs, the New York Times reports. The practice is also expanding around the globe—including in Mexican and Cuban waters where the US cannot regulate it, but would surely be impacted by a spill. More»

Recent posturing has already sent price up 20%

(NEWSER) - Going to war with Iran would be an expensive proposition for America's drivers. Tensions over the country's nuclear ambitions have already pushed crude oil prices up 20% to a record winter high, energy experts tell the New York Times . That's translated to an average $3.73 per gallon at pumps nationwide, with prices well over $4 in California. Summer usually pushes prices around 20 cents higher, but tensions with Iran could tack on an extra 50 cents or more. More»

But warns there's no 'quick fix' to rising gas prices

(NEWSER) - The Obama administration is open to using the strategic petroleum reserve if necessary to deal with rising gas prices, Timothy Geithner said in a CNBC interview, though he didn't sound terribly enthusiastic about the prospect, and warned that there was "no quick fix" to the problem. Gas prices are up 12 cents this week, and indeed shot up 3.5 cents overnight to a national average of $3.65, CNN reports. Geithner attributed that to improved growth expectations in the US, "and also Iran is doing a little saber rattling." More»