To My Great Surprise, Gas Prices Will Plummet Just Before November Elections
According to this article on CNN Money the cost of gas is likely to drop to between $2 and $2.50 sometime after September 15th.
Interestingly, "The levels that were in place were never justified to begin with," said Mark Gilman, an analyst with The Benchmark Co. "This is a bit of a return to reality."
So... let's get this straight. Gas prices were artificially high, topping out at over $3.06 for regular. Now - all of a sudden - they're going to plummet, just in time for the November elections. The Free Radical smells a rat.
Of course, that's not the best of it. The best thing is, I bet you're thinking to yourself - oh wow, $2 a gallon, that would be great!
Well, like the Pavlovian-conditioned rodent of which I spoke, that's what you're meant to think. Gas prices have been so inflated so that when they come down again, we think we're getting a bargain. Even though $2 a gallon still represents a 30% increase in price over what gas cost before the President with all the buddies in Big Oil got started.
Oh, and by the way - the Big 6 Oil Companies will make around $140 billion in profit this year. That's $466 for every single man, woman and child in the country. Nearly $2000 for my family.
Still think $2 is a bargain?
Looks like both you and CNN hit a home run with this one. September 2nd was pretty early in the game to predict the future and actually be right. Regular Unleaded here in Houston, Texas is down to $2.09 a gallon with no sign of stopping the downward spiral. Got any more predictions? How about the Dow Jones?
Posted by: Herb Firestone | September 25, 2006 at 09:04 AM
Thanks for stopping by Herb. Gas is at its lowest rate in over a year now, and the fall is continuing apace (crude at under $60 a barrel today). I think that you probably already have suspicions regarding the NYSE - and I think they'll be right. For the last couple of months the Fed has held interest steady, just in time to stop mortgage increases before November. And with inflationary pressures low due to dropping oil prices, I think we can expect to see the Dow Jones hit 11,800 before November. Tell you what Herb - nominate a charity and I'll donate $25 if the Dow Jones misses my estimate!
Posted by: ThinkingLiberal | September 25, 2006 at 09:31 AM
Sept 25th I said "I think we can expect to see the Dow Jones hit 11,800 before November". Well it's now October 4th and the stock market just closed at over 11,850.
Should have bet the mortgage on it.
Posted by: ThinkingLiberal | October 04, 2006 at 02:49 PM