Tuesday, November 15, 2005

Let the Seduction Begin

A story, repeated across the country, from my local newspaper:
Sonoma County gasoline prices have dropped more than 40 cents in the past month and they could go lower this winter, approaching what motorists paid a year ago.
Sure. And S.U.V. prices are down with good deals. Demand for hybrids will level off or fall. Everyone can relax, because gasoline prices are almost back to last years levels.

Nevermind that last years levels were new highs. This is how the American public is seduced into energy complacency. Anyone who understand markets knows that nothing goes straight up or straight down. As peak oil manifests itself, prices will fluctuate on a general uptrend. Hopefully that trend will continue in a gradual, measured, stair-step manner allowing our economy to adjust. God forbid there should be a revolution in Saudi Arabia or a major disruption in oil supplies.


At 10:13 AM, Blogger Lynne said...

Or another hurricane.

At 11:53 AM, Blogger Marla said...

I just had a conversation with some co-workers and we talked about how pathetic it is that people are so excited about the prices of gas falling. A month ago, I paid $36 to fill up my gas tank. The other day, I filled it up for $26. While yes, that is nice, I remember not so long ago when I was able to fill up the same gas tank for less than $20.

Damn SUV drivers...I wish they understood the concepts of supply and demand! I'm STILL pissed at Bush for giving that giant tax break a couple of years ago to anyone who purchased a truck or SUV. American consumers are, on the whole, fools. but that's just my opinion.


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