How all this summer fun is going to run? The standard response to blame Oil has been seen but there are a lot of people out there that don't read TOD that will start looking beyond to more realistic answers,... maybe.

My thought is that I would like this to happen gradually. I think that if the realization that there is more to prices, than gouging and lack of diligence, comes at too swift a rate then the wheels could come off the financial market cart and we could all be suddenly sitting in shit creek after breaking through the bridge of orderly conduct. (well that should bring the literati after me with pitchforks and rusty shovels). Anyway is our course to publish or not to publish, is it wiser to sit quiet pen on desk or take up electric publishing and disseminate widely? To warn or not to warn, that is the question. (Oh my they will beat me badly now). Rate of change laddies, rate of change what is the appropriate rate of public awarness change?

I may have missed that positive news report about oil and gasoline, can somebody fill me in ?

Well, there was the new Expedition commercial that touted how fast one could load the family + luggage for an "outing" whilst their hapless neighbors were still packing/cramming their minivan.

If one looked at the marginal cost of operation between an Expedition and a minivan, the cost of that time saved should be well in excess of $10,000/hour.

And of course, Hummers were explicitly designed to appeal to the reptile brain, which operates under different demand curves (eat or be eaten).

Let us not forget the mother who dropped off Johnny at a new school in a Hummer and the other kids muttered "How cool" as Johnny confidently strode in the school door with his Hummer status.

Such is the power of advertising.

Best Hopes for Mammal Brain Thinking,

Alan

MTBE-free gasoline just tastes better! But seriously, population growth, economic growth, and growing numbers of automobiles/trucks/etc all act to shift the aggregate demand curve. That would account for higher prices with higher demand, especially if the supply curve is steep (relatively inelastic). As long as supply grows, we shouldn't expect to see "demand destruction" in the aggregate, because we have been seeing demand growth pushing up prices. Aggregate demand destruction comes (has come, will come?) with shrinking supply, and we will know it when we see it, because consumption will be lower and prices will be moooocho higher. Unless b.cole is right.....hah.