There is plenty of oil and gasoline on hand, and pump prices usually fall this time of year. So what's causing the run-up? Most analysts point to the Federal Reserve's $600 billion economic stimulus effort.Oops! The Federal Reserve tries to control an extremely complex (literally impossible to model) system by pushing really hard on one variable.
The national average for a gallon of unleaded gasoline was $2.806 Thursday, according to AAA, Wright Express and Oil Price Information Service. That's about 7 cents more than a month ago and 12 cents above a year ago. It will probably keep rising. Some analysts think the price could be a nickel to a dime more by Thanksgiving.
Thursday, November 4, 2010
Headline: "Not-so-happy holidays ahead at the gas pump"
File this under "unintended consequences"
No comments:
Post a Comment