I think people are talking about the price of gas simply because they’re disgusted with the amount of money that’s being extorted from them at the pump. It shouldn’t take the majority of a one hundred dollar bill to fill your tank up.

The citizens are being bled dry by the oil companies and the government sits and watches, and thats wrong. Truck drivers can’t afford to deliver goods at the prices they’re paying in fuel.

As for the shock part, you point is noted. Thanks for the comment.

There is no “shock at the gas pump”. Yes people are talking about the price of gas because the media needs a story and at present, gas is their story! However, the very fact that people are constantly talking about “gas” means that there is no shock in gas prices. Remember shock can only occur if there is a sudden and immediate change in a market that is unexpected. Now let’s say that several refineries are shut down off of the Gulf of Mexico due to a hurricane. That would justify a “shock” and would greatly affect people at the pump because overnight gas prices could jump to eight dollars a gallon!

So how is gas affecting people? People’s behavior is geared toward rising gases prices; therefore, they are already adapting to the rising cost gas whether they realize it or not, which greatly reduces the economic impact of their change. So are businesses and in particular, construction companies where building material prices are dropping due to a drop in demand for building materials. If someone states that fuel is driving up construction cost they are greatly mistaken!

With regard to your investment suggestions they are great! However, they have to do primarily with micro-economic factors rather than the macro-economic factors you mentioned in your post.

Welcome to the April 22, 2008 edition of Carnival of Everything Finance.

We had over 110 really good articles submitted for this edition. Unfortunately I could not include all of them.
I hope you enjoy reading these articles.