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Re: gas prices in your area..?
$2.15 here in Wichita, KS!!! Lowest I've seen in a long time. One good thing about living here for a while.
Thing is, this is good in the short term, but the fundamental reasons behind the rapid oil price decline are actually all bad. The simplest interpretation is that prices are declining so rapidly because demand is seen as heading much lower than previously thought due to the heavy global recession we're now heading into. I say "simplest" because oil prices are not that straightforward; there is a good deal of forward-thinking speculation in commodities markets which, as we've recently seen, can lead to wide fluctuations in the price. But in general, it can be interpreted as a deflationary sign. If deflation takes hold more broadly throughout the economy it may feel good for you in the short term, but it's guaranteed to mean more misery in the longer term.
Of course, the Fed will do everything in its power to stop that from happening. But if they get it wrong and over-flood the market with cash and consumption holds enough, then we may again get some strong inflation...
Interesting times we live in.
$2.15 here in Wichita, KS!!! Lowest I've seen in a long time. One good thing about living here for a while.
Thing is, this is good in the short term, but the fundamental reasons behind the rapid oil price decline are actually all bad. The simplest interpretation is that prices are declining so rapidly because demand is seen as heading much lower than previously thought due to the heavy global recession we're now heading into. I say "simplest" because oil prices are not that straightforward; there is a good deal of forward-thinking speculation in commodities markets which, as we've recently seen, can lead to wide fluctuations in the price. But in general, it can be interpreted as a deflationary sign. If deflation takes hold more broadly throughout the economy it may feel good for you in the short term, but it's guaranteed to mean more misery in the longer term.
Of course, the Fed will do everything in its power to stop that from happening. But if they get it wrong and over-flood the market with cash and consumption holds enough, then we may again get some strong inflation...
Interesting times we live in.
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