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Originally Posted by Donger
As has been said, this unusual present rise is due primarily to two factors: the weak dollar and speculation. The market justifies the price, as you know.
I realize that high gasoline prices will hurt Americans and I've speculated (perhaps in this thread) what price will force Americans to alter their driving behavior to the point that US demand falls. I think we are very close to that now.
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or force Americans to force the govt to implement changes.
think of all the gas guzzlers on the road...not to mention the utility vehicles business use for daily operations as well as the trucking industry.
so changing driving habits means not driving. the fallout in the housing is and will lead to credit fallout because the US consumers do not have blank cheques for credit.
people cant simply unload those vehicles or stop using them b/c it means they lose more money getting another vehicle and businesses cant stop shipping and daily operations b/c they will go out of business thus causing unemployment to rise to levels making us belief were in 1930's again.
the analysts want to paint a happy picture and outlook but the monies people spend on energy must come from somewhere. Assets = liabilities’ + owners equity. the equation must balance (sorry had to throw that in there
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so driving habits isnt the answer we need realistic efforts being put into energy alternatives...and not in the next decade or two...we need them to have already been started or be started.
Edit - habits arent the only answer, only a part of it
