The phoniest of all agruments regarding the price of gasoline is "supply and demand affecting the world price" (thus ours)! The last 4 months have proven the fallacy of that much ballyhooed argument. China's demand didn't lessen. India's demand didn't lessen. The first world's demand didn't lessen. Anyone who attributes a demand shift to holiday travel demands hasn't got their head screwed on right.

It's still my bet that big oil realized that the ultra high prices they foisted on us were causing too much SERIOUS talk about alternative energy, to the point that real money was in jeopardy of being invested. The same ploy worked for them twice before, in the early and late seventies, and it looks to have worked again this time.

But the stock market is a demanding place, and once you've shown certain profit levels the market expects better profits next quarter. So we will have to see how the oil giants deal with that.

It's also my contention that there will soon be an awakening as regards "the economy is doing great".
The economy is less-and-less "the people", and sooner or later even the economists have to see that.
"Productivity" has been rising steadily, which makes the stock market grow. But that "productivity" is being achieved in two distinct ways that are HURTING "the people":
a) Higher profit per employee (i.e. "productivity") based on shipping jobs to China is good for the stock market but bad for the people;
b) Working longer hours for less pay and fewer (and more expensive) benefits, which does little favourable for "the people" and "family values" and our kids living better than we did. But it does improve "productivity" numbers!

I've said it before... if things keep going the way they are now we'll all be earning our keep trading used Wal-Mart goods on e-bay. None of us will be able to afford shopping at Wal-Mart and buying new.

cheers

>Many of us like to think that there is reason for an event. In the case of gasoline prices a number of factors come to mind. It could be:
>
>1. Greed.
>2. Market prices
>3. Greed
>4. God only knows
>
>Some people thought that gasoline prices would rise after the November 7th election, regardless of who won. This was the doing of the Republican Party in collusion with the oil corporations to show what a great economy we had thanks to the republicans. The prices after the election were to rise and it would be business as usual for the oil corporations. Charge more, experience the highest profits in history and want more!
>
>Why is it that with the dramatic increase in gasoline experienced earlier this year, it did not cause an increase in inflation? I do recall that energy increases were not factored in to calculate the rate of inflation. If you want statistics to look good and appease the masses you juggle the numbers.
>
>In California, we had proposition 87 to tax California oil companies, as other states tax oil companies within their own states. The voters turned down the proposition.
>
>Just before the November 7th election, gasoline prices at the pump dropped significantly. About three months ago we paid $3.39 a gallon locally. In Fort Bragg, California we paid $3.99 in August. On November 7th the price was $2.21 a gallon down the street from our house. I noticed that Friday it had risen to $2.29 a gallon. This morning it is $2.33.
>
>Well, we just pay what they demand and that is it. I do hope that we are able to find alternative fuel sources that will allow us to be independent of oil companies around the world. Personally, I am tired of paying for gasoline that gives profits to terrorists. I know that a “real (Bush) American” would never question anything that happens in our country. You just accept it and enjoy the consequences.