Pete C. wrote:
Jeff Wisnia wrote:
I don't really know much about how the retail home delivery heating oil
industry works.

But, the recent plummet in crude prices has me wondering what kind of
fun and games are going to take place between fuel oil dealers and their
customers who engaged in fixed price contracts for the coming heating
season back when prices were ascending at an unbelievable rate.

I assume the dealers must have entered into futures purchasing contracts
with their suppliers to protect them against further price increases and
those contracts will have to be honored by the dealers unless they
choose bankrupcy instead.

I can forsee that the dealers are going to have a helluva time getting
all the customers who entered into guaranteed price contracts with them
to cough up what they agreed to pay when the retail market price of
heating oil drops significantly. Particularly so if those customers are
being negatively hit by other aspects of the current crazy economy and
use that as a justification to default on their contracts.

It should be interesting....Educated comments appreciated.

Unless someone or their lawyer can prove some fraud in the contract, I
don't see how customers who signed a legal contract for such a futures
purchase has any recourse to get out of it, nor should they. The erosion
of personal responsibility in this country is completely out of control
and has to stop.

I agree with you but the idea of no responsibility for anything has
become rampant. Who knows how to stop it. Look at the GM situation, they
focused everything on building fluffed up trucks to the point that from
everything I read they didn't even bother with R&D on anything else. So
now instead of a normal be responsible for what you did situation where
the execs would be tossed under the bus for bad decision making and the
company picking what version of bankruptcy they think might work which
ultimately would mean the company would be reborn or its assets picked
over by others with better ideas they want us to bail them out. Same
idea with the various brokerages where many of these people because of
their behavior contributed to the implosion of that industry and
screwing normal responsible folks getting rewarded with huge golden
parachute payments and mega bonuses even though they screwed things up.