More on the media fueling the crisis... when gas prices were topping $4 a gallon, of course that was horrible. It was putting a dent in everyone's pocket book, and increasing the prices of many goods you buy at the store. Now, we have this article talking about the possibility of seeing a gallong sell for $1. And what does that mean? You got it... a crisis!
A gallon of gasoline can be had for 50 cents less than it cost just last month, and people are starting to talk about $1 gas. ...With wages stagnant, home prices plummeting and foreclosure rated soaring, dollar-a-gallon gas may help mom fill up in the family minivan and cab drivers in New York City, but prices that low also would truly speak to how rotten the economy has become. "The economy at that point worldwide would be in a serious, serious deterioration," said Geoff Sundstrom, spokesman for AAA.
At the very end of a very long article, they finally admitted that it could help turn around the economy. You think? Think of all the things that can be cheaper. Not just the gas you directly put in your car, but also food and other items at the store because transportation costs are less. It will also have a potential impact on many home heating bills (especially those who use fuel oil). One thing they don't talk about at all (which is a serious oversight) is whether natural gas prices are also falling, which will help a lot of pocket books in the next few months.
With fewer people driving because of a poor economy, there will be less demand for ethanol as well, which will increase the amount of corn that will be devoted to food products, which will decrease the price of many things at your local grocery store. Of course, they don't mention that either.
Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in anyway.