Chris Estes

As we head into the holiday season it is welcome news to see gas prices falling.  Lower gas prices should help lower the burden on US families and make better for the retail and mall industry.  According to a CNN article the lower gas prices may be nearing its end.

Gas prices slip below $2 nationally

• Average price in U.S. is below $2 for first time since March 2005, survey says
• All-time high average — $4.11 — was set four months ago
• Average price dropped 33 cents in the past two weeks
• Survey: Diesel prices are under $3 for the first time since September 2007

(CNN) — Gas prices dropped nearly 33 cents in the past two weeks, dipping below $2 for the first time since March 2005, a national survey said Sunday.
This station in Rio Vista, California, had gas prices below $2 on November 19. [pic to left]
The average price of self-serve, unleaded gasoline on Friday in the United States was $1.97, said Trilby Lundberg, publisher of the Lundberg Survey. The last time the price was below $2 was on March 4, 2005, she said.

The all-time high average was $4.11, set on July 11, according to Lundberg, and prices have been dropping ever since.

“The rate of decline has slowed somewhat, but it is still dramatic at 33 cents in two weeks,” she said.

Diesel prices averaged $2.93 on Friday, slumping under $3 for the first time since September 2007, she said.

Lundberg attributed the price reductions to a drop in crude oil prices and demand, and also because of low refining margins.

“Crude oil remains [the] main driver,” for the decline, she said, noting that crude oil futures settled on Friday below $50.

Demand is always low in November, she said, but the weakening economy is reducing it further.

However, Lundberg said that if crude oil prices do not fall further, “then the end of this [gasoline] price crash is either here or near.”

The Lundberg Survey is based on responses from more than 5,000 service stations nationwide.

On Friday, drivers in St. Louis, Missouri, paid the least at the pump — $1.61 — while drivers in Honolulu, Hawaii, and Anchorage, Alaska, paid the most, at $2.81.

Here are average prices in other cities:

• Detroit, Michigan — $1.76
• Houston, Texas — $1.78
• Atlanta, Georgia — $1.88
• Boston, Massachusetts — $2.01
• Chicago, Illinois — $2.10
• Washington — $2.19
• Los Angeles, California — $2.22

Today on Capital Hill the Big Three Automakers were grilled about their business practices. Apparently the Senator from Massachusetts heard my trimming the fat suggestion at the end of my last Big Three Post. But in the latest round of American Companies needing government funds the Auto Executives were grilled by a Senator from MA about their corporate jet usage. Read about it on ABC News.

Big Three CEOs Flew Private Jets to Plead for Public Funds

Auto Industry Close to Bankruptcy But They Get Pricey Perk

By BRIAN ROSS and JOSEPH RHEE

The CEOs of the big three automakers flew to the nation’s capital yesterday in private luxurious jets to make their case to Washington that the auto industry is running out of cash and needs $25 billion in taxpayer money to avoid bankruptcy.

The CEOs of GM, Ford and Chrysler may have told Congress that they will likely go out of business without a bailout yet that has not stopped them from traveling in style, not even First Class is good enough.

All three CEOs – Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler – exercised their perks Tuesday by flying in corporate jets to DC. Wagoner flew in GM’s $36 million luxury aircraft to tell members of Congress that the company is burning through cash, asking for $10-12 billion for GM alone.

“We want to continue the vital role we’ve played for Americans for the past 100 years, but we can’t do it alone,” Wagoner told the Senate Banking Committee.

While Wagoner testified, his G4 private jet was parked at Dulles airport. It is just one of a fleet of luxury jets owned by GM that continues to ferry executives around the world despite the company’s dire financial straits.

“This is a slap in the face of taxpayers,” said Tom Schatz, President of Citizens Against Government Waste. “To come to Washington on a corporate jet, and asking for a hand out is outrageous.”

Wagoner’s private jet trip to Washington cost his ailing company an estimated $20,000 roundtrip. In comparison, seats on Northwest Airlines flight 2364 from Detroit to Washington were going online for $288 coach and $837 first class.

After the hearing, Wagoner declined to answer questions about his travel.

Ford CEO Mulally’s corporate jet is a perk included for both he and his wife as part of his employment contract along with a $28 million salary last year. Mulally actually lives in Seattle, not Detroit. The company jet takes him home and back on weekends.

Plants Closed, Company Jets Stay

Mulally made his case Tuesday before the committee saying he’s cut expenses, laid-off workers and closed 17 plants.

“We have also reduced our work force by 51,000 employees in the past three years,” Mulally said.

Yet Ford continues to operate a fleet of eight private jets for its executives. Just Tuesday, one jet was taking Ford brass to Los Angeles, another on a trip to Nebraska, and of course Mulally needed to fly to Washington to testify. He did not address questions following the hearing.

“Now’s not the time to do that sort of thing,” said John McElroy of the television program “Autoline Detroit.”

“Now’s the time to be humble and show that you’re sharing equally in the sacrifice,” McElroy said.

GM and Ford say that it is a corporate decision to have their CEOs fly on private jets and that is non-negotiable, even as the companies say they are running out of cash.

Private jet travel is perhaps the greatest perk of all for CEOs, who say it allows them to travel more efficiently and safely, even in a recession.

AIG, despite the $150 billion bailout, still operates a fleet of corporate jets. The company says it has put two out of its seven jets up for sale and is reviewing the use of others. Though there are no such plans by GM or Ford.

“It appears that the senior management of the automakers simply don’t get it,” said Schatz.

The Guradian is reporting that Hilary Clinton is going to accept President Elect Barack Obama’s appointment to Secretary of State appointment.

Hillary Clinton to accept Obama’s offer of secretary of state job

President-elect Barack Obama reaching out to former rivals to build a broad coalition administration

Hillary Clinton will be Barack Obama’s secretary of state. Photographs: AFP/Getty Images

Hillary Clinton plans to accept the job of secretary of state offered by Barack Obama, who is reaching out to former rivals to build a broad coalition administration, the Guardian has learned.

Obama’s advisers have begun looking into Bill Clinton’s foundation, which distributes millions of dollars to Africa to help with development, to ensure that there is no conflict of interest. But Democrats do not believe that the vetting is likely to be a problem.

Clinton would be well placed to become the country’s dominant voice in foreign affairs, replacing Condoleezza Rice. Since being elected senator for New York, she has specialised in foreign affairs and defence. Although she supported the war in Iraq, she and Obama basically agree on a withdrawal of American troops.

Clinton, who still harbours hopes of a future presidential run, had to weigh up whether she would be better placed by staying in the Senate, which offers a platform for life, or making the more uncertain career move to the secretary of state job.

As part of the coalition-building, Obama today also reached out to his defeated Republican rival, John McCain, to discuss how they could work together to roll back some of the most controversial policies of the Bush years. Putting aside the bitter words thrown about with abandon by both sides during the election campaign, McCain flew to meet Obama at his headquarters in the Kluczynski Federal Building, in downtown Chicago.

Obama, speaking before the meeting, said: “We’re going to have a good conversation about how we can do some work together to fix up the country.” He said he also wanted to thank McCain for his service to the country.

Asked by a reporter whether he would work with Obama, McCain, who has long favoured a bipartisan approach to politics, replied: “Obviously”.

Sources on both sides said Obama did not offer McCain a cabinet job, but focused on how the senator for Arizona could help to guide through Congress legislation that they both strongly favour.

Given Obama’s status as president-in-waiting, the two met in a formal setting, a room decked out with a US flag, and were accompanied by senior advisers. Obama appeared the more relaxed of the two, sitting with legs crossed, smiling broadly and waving to reporters, while McCain sat stiffly, with a seemingly fixed grin.

Although the two clashed during the election campaign over tax policy and withdrawal from Iraq, they have more in common than they have differences. They both favour the closure of the Guantánamo Bay detention centre, an increase in US troops to Afghanistan, immigration reform, stem cell research and measures to tackle climate change, and oppose torture and the widespread use of wire-tapping.

Although Democrats made gains in the Senate in the November 4 elections, they fell short of the 60 seats that would have allowed them to override Republican blocking tactics and will need Republican allies to get Obama’s plans through. This was highlighted today when the Democratic leadership in Congress announced that a broad economic stimulus package Obama sought was not likely to be passed because of Republican opposition.

Obama confirmed at the weekend that he would offer jobs to some Republicans. One of the names that crops up most often is Chuck Hagel, the former Republican senator who is a specialist in foreign affairs and a critic of the Iraq war.

Bill Clinton’s relationship with his foundation may prove to be a bump in the road during Senate Confirmation in addition to the Republican blocking tactics. CNN.com is reporting Bill maybe the biggest problem in filling Obama’s cabinet seats. None-the-less this is a fitting role for Senator Clinton.  With almost two decades of foreign policy experience the Clinton’s would be a welcome face in Embassies around the world.  Bill Clinton may have to abandoned his involvement in international business for the duration of Hilary’s Department of State administration.  Seeing how the conflict of interest is no less than Dick Cheney’s ties to the oil and gas industry all that needs to be established is a clear definite separation.  Since most of Bill’s business ventures are charity based the conflict should be genuine in nature but will still need to be abandoned.

No doubt the successful nature of Bill’s venture stems from name recognition and him being a former President since he is acting in no official US Government manner nothing can really be said.  But if he is the husband of the US Secretary of State it could prove to undermine the intentions of the US State Department.  One way to handle the conflict would be to merge organizations and release managment of all interest to another aide organization.  Or could just be like Dick Cheney and step down as CEO of the organizations and maintain a vested monetary interest which will no doubt cause as much trouble as Cheney.  The best and easiest thing to do would be to end all ties.

General Motor’s posted a video on YouTube that is supposed to scare people into donating Billions of needed funds to stabilize their operating budget.

According to Joe Weisenthal of ClusterStock:

GM (GM) says we still don’t get it. If we don’t save them, they’re gonna nuke the economy to all hell. In case dire warnings of billions and billions in losses aren’t enough to freak you out, the company has posted a scare-video on YouTube, complete with ominous music and the kind of overwrought imagery you might got during a preview for 60 Minutes.

In an apparent attempt to save the company GM is reportedly cutting the extravagance according to USA Today.

Reduced office supplies. GM used to stock for every possible stationery need. No longer. “The office supply cabinets have only the bare minimum now — inexpensive pads, a few roller-ball pens and wooden pencils,” spokesman Tom Wilkinson says.

No raises. White-collar workers won’t get bonuses, raises or 401(k) retirement savings matches.

Pricier company cars. As of last summer, executives had to pay $100 more a month to use a company car and can’t rotate to new ones as often.

Make you own opinion – I wonder if Exec’s are joining in the cutbacks.  Probably not.  I bet cutting 1 corporate jet would save the same amount as not buying office supplies.