Gas Prices To Hit $3.00?
If indeed this is true, and Pickens is considered an expert in these matters, then the economy will take a major tumble in the next few months. $3.00 a gallon is a huge expense and such an increase will cause transportation prices to rapidlly increase, leading to price increases on everything! I ain't an economist, but this doesn't bode well. Most retail chains have developed highly sophisticated alogrythms that allow them to keep inventory low - and as a result, transportation of cargo and inventory is a huge expense for retailers - especially big national chains like Wal-Mart, Target and Best Buy. As the costs of keeping the shelves stocked goes up, so will prices. It won't just be SUV's that see a dramatic loss in sales. Consumers will stop buying all the crap they covet on their suburban jaunts to their nearest big box retailer. The already failing airline industry will feel the effect of rising fuel costs as well. The economy's perilous position is poised above the shitter and gasoline priced at $3.00 a pound could easily be the thing that sends it toppling.
posted by majikwah @ 6/22/2005 09:17:00 AM
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