Tuesday, October 28, 2008

Gasoline prices plunge -- very good news

Not all the news is bad. Gasoline prices nationwide have plunged $1 per gallon in the past month, to $2.75. Last July they were around $4.25, and in part of Los Angeles they were approaching $5 per gallon. The best message here is that markets work. Some times prices get out of whack but they do so in order to bring supply and demand back into balance. With oil prices now around $60/barrel, gasoline prices will probably fall some more.

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