Politics from the Palouse to Puget Sound

Thursday, July 17, 2008

Giving Credit Where Credit is Due

Oil prices have dropped significantly the past two days and the stock market has rallied. The price of oil dropped immediately after President Bush announced that he would end the executive ban on off-shore drilling. However, the leftist Bush hating media refuses to give credit where credit is due. Instead, the media is crediting high prices for driving down consumption. Preposterous. Markets are slow to react to a gradual overstock situation. They are quick to respond to news. Just the possibility that the US may start drilling for oil has made the market nervous. It almost doesn't matter though, both scenarios reinforce the the law of supply and demand which means the Democrats are caught in an election year trap.

1 comment:

Mr. C. said...


The drop in oil prices makes good sense.

Not only is it a matter of supply on-hand currently, but what the supply is *predicted* to be.

Just threatening to start drilling was sufficient to lower the world-wide price of oil.

If Bush and Congress actually go thru with it, you'll see prices come down even farther.

It's amazing what increasing the supply of a product will do to the costs.

Adam Smith's "Invisible Hand" at work.