Date: Sat, 28 Jun 2003 08:01:46 -0700 From: B&D <NO_SPAMnopsamCOM> Subject: Re: Why aren't gas prices dropping?
On 6/28/03 7:39 AM, in article db9rfvkii7bemo31gadtn4jo3ub0g0nd25nopsamcom, "'nuther Bob >" <<nonenopsam.com> wrote: > On 28 Jun 2003 11:38:49 GMT, hdgdnnopsamcom (Hdgdn) wrote: > >>> Why aren't fuel prices dropping like expected? >> For the same reason you won't really see a fat man in a red suit on your roof >> on Christmas eve. > > He, he, he. Actually, it's summer, prices tend to rise with increased > consumption. Here in Northern California, the prices have dropped - about 15% - from the pre-war highs. >> Lower gas prices was just one of the ruses to get the >> American public to "buy into" the war, > > I didn't really hear the claim that we'd get _lower_ prices. I do not recall promises of lower prices either. Though I did notice that gasoline prices in my region went from a prewar price of about US$2.30 per gallon of premium (hey, I drive a Saab Aero, so premium it is) to about US$2 now. I attributed it to the oil companies not having to hedge against a WMD strike in an oilfield. >The > discussion of Saddaam as a mad man sitting in the middle of the oil > region was true. Neither the big oil companies or the big oil states > liked it one bit. There's a reason Saudi Arabia, Kuwait, UAM and > others supported us. Invasion was good for the oil companies *and* > the oil states. Win-win for them, SSDD for us. Agree again. The US invasion was unpopular, but in private I have heard that the Saudis and others are relieved that Saddam is out of there - after all 12 short years ago he had invaded Kuwait and had massed the troops for a possible invasion of the Saudi oil fields. > As always, big business wins. That's been true for 5,000 years. Well, not 5000 years - try 150 years. Well, before the limited liability ownership rules created in the mid-19th century, there weren't particularly large firms and concentrations of capital anywhere - the "big" in "big business" did not exist until the railroad companies were founded in the 1800's (first use of the new rules). (Previously as a business owner, you were personally responsible for the solvency of a company - meaning if they didn't make a profit, they took money from the investors. And conversely, when they made money, the investors got to take it. The limited liability laws made the value of shares themselves the only exposure - this allowed companies to get smaller amounts of money from a larger class of people, and have the concentration of capital required to do big projects, such as the railroads and telegraph networks that were underway shortly after that. I think Lloyds of London are incorporated under the previous rules so operate that way.) Granted this is WAY off topic, but businesses thrive because of their ability to serving changing needs, and while being wary is important when dealing with anyone, these businesses "make out" so well simply because they deliver the goods and services we both want and need for prices we are willing to pay. >> The oil companies aren't going to let their profits drop any time soon. > > Never. Never have, never will. Fast to rise, slow to decrease. Yup - just like any company will never willingly drop their profits. Oil isn't special in this regard.
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