Saturday, November 22, 2008

WTC???

I understand the concept of "supply and demand" and think that it is generally true. However, I don't feel it is adquate to explain this:

I'm sure people were driving less when gas was well over $4.00 / gal, but with current prices as low as they are the national daily miles has certainly picked back up. Yet there seems to be no end to the bottom of the gas prices- just the same as the stock market. I have a really hard time accepting that current gas prices are driven purely by market forces and are not the result of external manipulations- that doesn't add up. Perhaps the government is driving gas prices downward in order to defribrillate the market and stave off a depression? Perhaps Lindsay Wiliams is right and the World Bank is driving this. The World Bank would, after all, have a vested interesting in halting a global recession/depression. Whatever the cause, simple market forces don't seem to add up here.

3 comments:

The Unabashed Blogger said...

Honestly, I'm excited about the gas prices. There's nothing like filling up for less than $45 while driving a 4cyl S-10. Right now I'm hitting around $20!

Maybe if they were able to "keep" the gas prices down with some legislation the car manufacturers would be able to sell more vehicle and wouldn't need a "buyout".

Percussivity said...

Well there is really no way legislation could do that without the government grabbing even more power over the 'free' market. The point here I think is that the gas prices are clearly not being controlled by the free market as most assume is the case.

The Irascible Neufonzola said...

Are you serious? You can't see that this is being caused by CLIMATE CHANGE??!! Follow the hydrocarbons man, follow the hydrocarbons.