On Sun, Nov 30, 2008 at 5:42 PM, John Williams <[EMAIL PROTECTED]>wrote:
> On Sat, Nov 29, 2008 at 10:32 AM, Nick Arnett <[EMAIL PROTECTED]> > wrote: > > If free markets reliably regulate prices, > > What exactly do you mean when you say "free markets reliably regulate > prices"? Exactly what I wrote. As a corollary, I am suggesting that the spike in oil prices was primarily due to non-market forces. > > I don't think there was any supply shock. But I have little doubt that > demand decreased with the world-wide economic slowdown. That hardly explains a sudden, huge increase in the price. From what I recall from college economics, decreased demand generally depresses prices, all other things being equal. > > One thing I know is that I have reliably been able to fill up my tank > wherever I have been in the US during the last year. Apparently the > market is doing a decent job of coordinating tens of thousands of > people to prospect for oil, extract the oil, transport the oil across > the ocean, refine it to the appropriate regional codes, transport the > gas to the stations, stock the gas, and dispense the gasoline I need > for my car, all without me having to wait in line or search for a gas > station that is not out of gas. That makes me happy. You obviously weren't in North Carolina, where stations were out of gas and prices were the highest in the nation recently (and where my mother was very happy to own a Prius). But what does that have to do with price regulation, by market forces or otherwise? Nick _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
