You might have heard over the weekend that skyrocketing gas prices have finally "plateaued." If gas prices were like gravity, you would anticipate they would start plummeting soon. Raise your hand if you expect that.
Me neither. While the words "skyrocketing" and "gas prices" often end up in the same sentence, "plummeting" and “gas prices” rarely occupy even the same paragraph. In a perfect free market, prices should float up and down with equal speed. But in our market, what goes up doesn't seem to come down, at least not at once. What gives?
We've been told for months that instability in the Middle East spooked the traders who set gas prices, which are almost $1 per gallon more at the pump than a year ago. Prices jumped 30 cents from mid-March to mid-April alone, to an average $3.88 a gallon. What are odds, do you think, that average prices will return to $3.58 by mid-May?
The quick rise/slow fall phenomenon will feel familiar to most consumers, who often explain it with this conventional wisdom -- greedy retailers take advantage of temporarily high prices as long as they can to sock away a little extra profit.
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DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
5 comments:
Gosh,
$3.88 is that all?
My Predident Obama said you all will pay as they do overseas...
Here's the way it works and you can check the history for accuracy....gas prices will be stable for 6-9 months, then some "crisis" will arise causing the price to jump to painful levels. THEN, the crisis will "abate" and the price of gas will go down, but never to it's prior level, but always resulting in a net increase of 20-50 cents. Until the NEXT crisis. Over a period of several years, the net increase is substantial. Let it get REALLY painful, so when it gets "lowered", John Q. Citizen is happy to see the reduction and is relieved at the new "low' price, which is STILL higher than it was before, but hey, at least it's not $5 a gallon anymore. Guess what...in 6 months (or less), there will be another "crisis"....You think Exxon post profits of 30 BILLION a quarter (and they are just ONE of the oil companies) because they REALLY only make 4 cents a gallon profit? Come on, man....REALLY????
Problem is, there is NO crisis! They tried to say the trouble in Libya was to blame and we get ZERO oil from Libya!
It's all games and more games to the speculators! THEY are the ones running up the prices!
Forget Food Stamps. I will make sure my family has food. I want FUEL Stamps!
3:27
Who are the "speculators"?
Aren't they the international bankers who print the money and charge us interest?
There is a small Cabal of Profiteers who control all of the world's politics and more importantly, all of the world's MEDIA.
We are mind controlled.
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