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Gas Prices Finally Falling

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So much of the nation is so dependent on gas that there’s certainly been a collective sigh of relief over the past few weeks as the price at the pump has slowly started slipping. The last I read, the national average price for a gallon of gas was around $3.80. Less than a dozen states had prices hovering at more than $4 a gallon.

A year ago, those figures would’ve seemed astronomical, but today, we’re hopeful that this is a sign of good things. Reports are that worldwide demand for petroleum products is finally slowing down so, as you learned in economics class, it’s a lesson in supply and demand. Finally, in this case, the consumers are benefiting.

Of course, although this is good news, it’s just relative. Today’s gas prices are still more than $1 higher than they were this time last year. But take it for what it’s worth. At best, a sign of a slowly recovering economy. If not that extreme, at least it’s the sign that people have learned to conserve energy. They’re carpooling and telecommuting and driving more fuel-efficient cars so in the end because the demand’s not as high, the price is not as high.

All signs point to prices to keep slowly dropping, at least for the time being. I don’t think we’ll ever get back down to the gas prices we had enjoyed and expected for so long, but there’s no way we’re going to become accustomed to these ridiculous costs.

Let’s hope at least one little part of the economy is starting to recover.

Donald J. Trump is Chairman of Trump University.

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9 Comments

[-] Posted by Business 2000 Foundation.com on 08/18/2008 5:10 PM
We agree in part. However, lets go back a few more years...it was still the same issue, same problem and no true defined leadership on this specific supply and demand issue(s).

So much missed opportunity. Why did we as a nation avoid these issues?

If the USA would of addressed the issue(s) and stop the balking on political ends, it would have been resolved years ago. When is true ledership in practice and defined?
[-] Posted by William Yang on 08/19/2008 1:00 AM
I think it's too fast to celebrate. the oil consumption are growing every seconds it's a matter of time the oil company turned into madness again.

if only there's an unlimited energy source . . .
[-] Posted by Mary Rose on 08/19/2008 6:11 AM
The economy is a pyramid. When people at the base are hurting, the pyramid is unstable. When the pyramid is unstable, the people at the top have to scramble to keep their place. We all want the American Dream- a home of our own and 2 cars in the garage. The cars can be electric, solar, hydrogen, alcohol or gasoline as long as we are mobile. As long as we have a 30 year fixed rate mortgage, then the median home price cannot be higher than 3 times the median salary. Think that a 40 year mortgage might be a possible adjustment that can encourage growth. The math needs to be that the typical family can still sell their large home at retirement for enough equity to buy their retirement dreams. The math also needs to be that the mortgage payment, taxes, and insurance is about 1/3 of a family's income. If the price of fuel for the cars is more than an incidental expense, then people will first stop spending- then when spending is at a minimum, they will economize on fuel. If they are renting, then they are saving for a down payment. If interest rates are too low, then the people who are saving cannot spend. Spending has to be at a certain level for economic growth. Conditions are currently not favorable for typical people to spend. The economic conditions have been favorable for the wealthy for some time now. But if we want a strong stable economy, the people need to shift their attention to the base of the pyramid. It's simple math. That does not mean that the wealthy need to become poorer, it simply means that the wealthy who help strengthen the base of the pyramid are more likely to survive the struggle ahead. For people to spend, homes need to be more affordable, fuel needs to become more affordable, salaries need to increase, and ways to obtain and retain homes need to be created. It's simple math.
[-] Posted by member1849710 on 08/19/2008 10:12 AM
It obviously actually follows the trend in oil prices, only with somewhat of a lag - but upclose analysis show that, especially in these times, gas prices have higher elasticity going up, rather than down. They tend to consolidate of certain support levels, and tend not to come down below those, even if oil gets cheaper. On the contrary, when we're talking about price hikes, the trend is more sudden. Also, gas prices sta up for a longer period of time.
[-] Posted by member1850011 on 08/19/2008 8:46 PM
I'm on the retail side of things and my fear is that high gas prices will crush the holiday shopping season this year. Mid levels retailers are getting abandoned for value players, and even the once ressistant upscale sector has grown to include many people that were reaching beyond their income levels to buy those brands. Now they are also heading back to target and kohl's. Should be interesting to see how it shakes out. There is a <a href="http://tenantpros.net">retail tenant directory</a> at TenantPros.net that offers more info about various retailers.
[-] Posted by member1586629 on 08/21/2008 12:11 PM
... Let's not forget the 1970s lines for gasahol, I might add.







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[-] Posted by member1856919 on 09/06/2008 4:36 PM
I tink the real problem is gready.....there are some people playing with peoples mind and needy...to became richest...........and is not only the OPEC...there is so much speculation abot oil shortage...but I read that in ALASKA.....they do have OIL to feed the world for at least 20 years..!!
Why USA...dont stop buying OIL...somewhere else.....Think about it!!

Now, the Republican party, choose as Vice-president..to the Alaska's Mayor???
Who is playing with WHO??

This smell LIKE....BUSH...to me....fraude.....gready......sorry but is time to think hard before VOTE.
[-] Posted by member1523376 on 10/22/2008 4:05 PM
To Mr Trump
or whomever this concerns.

Hi my name's Tyrone Daniels, I'm a Southern African in need of your opinion.

Please be mindfull... I'm not attacking your country & it's policies, I'm simply sharing my opinion.
Foreign sentiment towards the US of A concerning Nature Conservation, global warming etc, are largely negative. You're well known for driving big petrol guzzlers, gigantic aircraft carriers etc.
Your economy is one of the biggest on earth with hugh industrial implications & your government
has neglected to commit to the Kyoto Protocol.

Be that as it may, the present day financial crises has once again created an oppertunity for you to seize the day. If America takes advantage of this she will kill many birds with one stone.

I'm referring to the price of oil, demand versus supply, the improvement of your economy and it's negative overseas sentiments.
Since before the credit crunch, G Motors and it's other American rivals were seriously losing business.
Foreign manufacturers with smaller, more fuel efficient vehicles were having them for breakfast.
Mr Trump himself acknowledged that if there's less demand for oil, the price will drop.

So why is this plan of action not being implemented?
Yes, vehicle sales have fallen worldwide, people are cash-strapped... but as long as we're not extinct, human beings will always have a need for transport, the more efficient they are, the better.
Think about it... America is so vast, if a hugh majority of it's citizens use vehicles that's more fuel efficient, even with China & India's expected growth... it will make a hugh dent in the cartel's asking price.

General Motors & ilk, by producing these vehicles, will experience a rebirth which inturn will stimulate the economy, making the bankers, shareholders & investors very happy indeed.
Their message of faith for an improved economy will snowball, and hopefully lift sentiment the world over, not to mention the benifits to the environment.

I'm a die-hard capitalist yet, I believe in the merits of the infamous golden goose fable.
In order to reap the benifits of the golden eggs, you need to look after the goose that lays them.
There's a saying, money follows success.
I really believe that if thes sinking corporations rethink their strategy for the benifit of all,
the sun will again rise for them.

Regards
T. Daniels
[-] Posted by member1954040 on 03/31/2009 4:03 AM
Many people are hoping that our economy find it’s way on the road of recovery. And this falling prices of gas is one of the good signs that we can recover from the recession. Many people are already affected by this economic mess and some of them are getting personal loans just to cover unforeseen expenses. People look into a personal loan for all kinds of reasons. You can use a personal loan to buy a house, start a business, or get a college education. Other reasons for getting one include emergency situations, such as to ward off foreclosure, handle a family emergency, or to pay off hospital bills. Proper budgeting and planning is a vital skill to learn. You should have at least 6 months of salary built up in savings to ward off disasters, but it doesn't always work out that way, and it is at those times when you might look into a personal loan. Read more at http://personalmoneystore.com/moneyblog/2009/03/26/benefits-personal-...
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