Monday, April 24, 2006

Rising Gas Prices.

Welcome to what may be the end of the automobile, NOT. There has been a false cieling to the top of gas prices in the United States for many years. The gas prices are going to continue to rise for a while. I do not like the situation, but it is one thing that we all have to live with. Mark Cuban has written a good article that approaches the gas price issue from the angle of stock trading being the culprit in the overall scheme of why gas prices are so high. I think he has a very strong point, but I do not think it is the only pont. Yes indeed speculation in the commodities markets affect pricing of just about everything in the U.S. But it is not the only factor.
I think that supply and demand and the belief of companies that they have us over a barrel is the primary reason that we will continue to see rising prices. The oil companies in the US are makeing a very high profit, and wish to make sure that profit is increased as expiditiously as possible.
Am I missing something?


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