Gas prices - Why strings MUST be attached to any bailout
Detroit still far behind the PriusPop open the bubbly, ladies and gentlemen, it's party time. In 4 states gas has fallen below $2.00 per gallon. On Wall Street, the overwhelming consensus is $50 oil before $65.
But, is that a good thing?
When gas was $2.00 US automakers laughed at the Toyota Prius. Today, the Prius has already sold more than 1,000,000 Prius hybrid cars, yet there won't be one US made Prius-contender on the road until late 2010 with the Chevy Volt. Moreover, GM probably won't be selling the 100,000 Volts per year until at least 2014.
Fortunately, if gas prices remain low, America's gas-guzzling will decline thanks to CAFE, but CAFE regulations won't be strong enough to end foreign oil dependency. Unfortunately, as history as proven, US automakers will simply do as much as needed to achieve CAFE, and when foreign oil dependency again rears its ugly head, America will again be unprepared.
Thus, a bailout must include strings.
Labels: bailout, CAFE, Chevy Volt electric vehicle concept, Foreign Oil Dependency, global warming, Hybrid Vehicles, toyota prius
posted by Dahcredyns at
9:19 AM
4 Comments:
Actually, this is a bad thing! Gas projects are being put on hold. The IEA has determined that the existing gas supply is declining at an annual rate of 9%. In 5 years we will need to replace 45% of today's supply and that simply isn't happening. We are headed for tough times for those who rely on gas powered transportation.
It is my humble opinion that fuel pricing is completely artificial and fixed. Anyone who believes that such a product is at the will of the free market is smoking crack.
I wouldn't put it past the powers at be for pushing fuel prices down in order to make the Big 3 look better. In relative terms, fuel pricing has dropped MUCH more in this country than others...how can that be considering that we use more than everyone else?
Anything to keep these POS companies afloat...at all costs and no consideration for the general populous...who...by they way...is too dumb to realize anyway.
Keep driving those trucks and SUVS! You're doing your kids a BIG favour folks!
That's my point Zendude. Lower gas prices are like fool's gold.
Noz - Speculation has helped drive up and down the price of oil prices, so that's part of the reason for this decline. Still, on the British exchange oil prices are lower than in America.
I don't think anyone would argue that there isn't some manipulation in oil prices, but free markets also play a role.
Check out this video about gas prices! http://www.thetruthabout.com/public/266.cfm?affID=and16
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