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GasBuddy News Article

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Why lower gas prices might be a bad sign

Sign on San Diego by the Union Tribune -- As San Diegans fill up their gas tanks during this July Fourth weekend, the good news is that they're spending a little less at the pump than they did a couple of weeks ago – and a lot less than last year.
[snip]
"We were predicting last Monday that prices would be going up by a penny, but instead they went down by about 1.5 cents," said Charles Langley, a gasoline analyst....
The bad news is what that drop in prices signifies: a vote of no confidence in the direction of the global economy. And with unemployment continuing to rise and salaries continuing to shrink, there's good reason to be wary.
Over the past week, the price of oil and other commodities has plummeted as skepticism mounts over whether the 19-month recession is nearing an end....


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Submitted Jul 05, 2009 By: chumpo
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REPLIES (newest first)
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honda0105
Champion Author Tallahassee

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Message Posted: Jul 7, 2009 6:05:57 AM

blue48: you're right. We COULD help crank up the economy again, if it wasn't for all the speculators. But, lower gas prices do inhibit the development of alternatives.
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Blue48
Champion Author Illinois

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Message Posted: Jul 6, 2009 10:16:28 PM

When gas prices are lower & people save a couple bucks, there is a chance they may spend those couple bucks at another local store. When gas prices are higher & they wont have those extra $$ & just go home depressed
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honda0105
Champion Author Tallahassee

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Message Posted: Jul 6, 2009 10:14:27 PM

large fluctuations are bad, but is this just a spin?
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honda0105
Champion Author Tallahassee

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Message Posted: Jul 6, 2009 10:12:55 PM

lower gas prices hinders development of alternative energy sources. Nothing more, nothing less.
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StuCoFromage37
All-Star Author Illinois

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Message Posted: Jul 6, 2009 11:05:24 AM

I'm sorry, but I don't think low gas prices will ever, ever be a bad thing. When nobody can afford anything, wouldn't it make more sense to lower the prices to at least $2.00/gallon, so people can go places again? :(
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the1roadhog
Champion Author Atlanta

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Message Posted: Jul 6, 2009 8:31:42 AM

The US economy is on life-support and won't recover until the credit markets relax and small businesses can start feeling that they won't be taxed into the stone age.
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courier43
Champion Author New Jersey

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Message Posted: Jul 6, 2009 8:17:58 AM

Lower interest rates as well as printing more money may be just pushing on a string. Try this link:
http://www3.signonsandiego.com/stories/2009/jul/05/1b5dean22332-why-lower-gas-prices-might-be-bad-sig/?uniontrib
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kelsielee
Champion Author Atlanta

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Message Posted: Jul 6, 2009 7:50:29 AM

I am very glad about lower gas prices, but I am also concerned that the economy is not improving (and unemployment is not going down).
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Tnerbeel
Champion Author Houston

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Message Posted: Jul 6, 2009 7:16:09 AM

You can find bad news in just about anything if you look hard enough and our media are experts at it.
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BBHybrid
Champion Author Pittsburgh

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Message Posted: Jul 6, 2009 7:09:11 AM

We need lower gas prices to jump start the economy. Obama should act on this and help the US out
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olcowboy14
Champion Author Spokane

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Message Posted: Jul 6, 2009 7:05:15 AM

At the current price of oil it would be profitable to use our own resources. If this administration was serious about creating jobs they would allow drilling here at home.
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wegman
Champion Author Twin Cities

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Message Posted: Jul 6, 2009 7:04:40 AM

Story not found...

But, from the tease.

Yes, the collapse in gas prices is a symptom of the Dodd-Frank recession. And the continued downward slope is a sign the recession is still with us. BUT, the RECESSION IS STILL WITH US!!!! There should be a vote of no confidence in the direction of the Global Economy. The key to ending the Great Recession is American recovery. BUT, with the unholy Triumvirate of Obama, Pelosi and Reid in charge in Washington that ain't going to happen soon. Porkulous was a liberal wish list, NOT a stimulus package (if they did that it would be front loaded with infrastructure spending and immediate tax cuts). US unemployment continues to skyrocket (more proof that the Pelosi-Obama stimulus bill is an unmitigated failure). If consumer behavior showed faith in the economy the American populace is even dumber than it proved last November.
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ldr1
All-Star Author Denver

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Message Posted: Jul 6, 2009 7:00:35 AM

conserve .. and drill baby drill..
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leeso1
Champion Author San Diego

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Message Posted: Jul 6, 2009 6:58:03 AM

BS
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snell snail
Champion Author Atlanta

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Message Posted: Jul 6, 2009 6:54:04 AM

...faulty analysis & conclusion....
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Beboper
Champion Author Virginia

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Message Posted: Jul 6, 2009 6:53:52 AM

old news
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DrivingFool2
Champion Author Wisconsin

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Message Posted: Jul 6, 2009 6:53:40 AM

They want to blame it on the consumer instead they should be looking at OPEC, the oil companies and the refiners for squelching the economy. Don't hand us this " a vote of no confidence in the direction of the global economy" They are the ones that have killed every attempt by the economy to get better. People can't buy merchandise if they are spending all their discretionary money on gas and energy.
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JCUBE
Champion Author Michigan

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Message Posted: Jul 6, 2009 6:52:56 AM

Jerking around gas prices doesn't help the economy one iota....
These damned analysists again...

Quit playing ostrich and get you heads out of your a--, and bury it in the sand in some California desert..

Plain greed and stupidity
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gabbygusIN
Champion Author Indiana

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Message Posted: Jul 6, 2009 6:52:30 AM

Lower price at the pump = better for the economy!
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abuck
Champion Author Pittsburgh

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Message Posted: Jul 6, 2009 6:51:29 AM

And this is a shock how?
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thwadi
Champion Author Cleveland

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Message Posted: Jul 6, 2009 6:50:50 AM

No shortage of idiots writing articles.
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NJColt
Champion Author New Jersey

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Message Posted: Jul 6, 2009 6:50:07 AM

It's a vote of no confidence in our government, our financial industry, our auto & manufacturing industry, our employers... not GLOBAL economy - but OUR OWN problems at home.
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cathevan
Champion Author Manitoba

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Message Posted: Jul 6, 2009 6:49:58 AM

old news
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bumpygas
Champion Author Nebraska

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Message Posted: Jul 6, 2009 6:49:37 AM

Welcome to the real world news media. It sure takes a long time for the news media to figure something like this out. Must be getting to much kick-back from the oil industry to be printing this kind of news.
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sing_1
Champion Author Florida

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Message Posted: Jul 6, 2009 6:49:28 AM

Continue to encourage research into alternative fuels.
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colt453162
All-Star Author Houston

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Message Posted: Jul 6, 2009 6:46:52 AM

Well jacking the price of gas up is not going to help any of the consumers out during this time period when everyone is trying to recover.
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RichardoB
Champion Author Fayetteville

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Message Posted: Jul 6, 2009 6:45:57 AM

They seem to be saying that the price of gas at the pump hurts the economy. I think the analyst in question is just upset because he guessed wrong.
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jmg144
Champion Author Maryland

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Message Posted: Jul 6, 2009 6:45:01 AM

Doubtful oil prices will drop to 70's level ever. Key issue is volatility for the next five years.
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tankneverfull
Champion Author Charlotte

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Message Posted: Jul 6, 2009 6:44:55 AM

Large fluctuations like this are never good either up or down it means there is no stability and that is something we need to find.
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pitamon
Champion Author Philadelphia

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Message Posted: Jul 6, 2009 6:44:40 AM

Conservation!
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dhawk24
Champion Author Maine

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Message Posted: Jul 6, 2009 6:43:31 AM

Down is good..
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cheapertvs
Champion Author Richmond

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Message Posted: Jul 6, 2009 6:42:27 AM

We need the prices of oil, gasoline and natural gas to drop back to 1977 levels. Our economy has been in the dumper for too long.
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vamike
Champion Author Virginia

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Message Posted: Jul 6, 2009 6:42:24 AM

Hey, big surprise. The experts were wrong again.
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BigDogOH
Champion Author Cincinnati

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Message Posted: Jul 6, 2009 6:42:20 AM

Lower pump price is GOOD were I come from
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mandoid
Champion Author Colorado Springs

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Message Posted: Jul 6, 2009 6:41:44 AM

investor and business news. we need to drill locally and put these people in private sector jobs
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VetteFan
Champion Author Indiana

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Message Posted: Jul 6, 2009 6:37:25 AM

These people have the wrong read. What it means is that consumers are leary of demand spurring investor frenzy and having this get worse. Jobs have to come back before people will feel good about the economy. The price of gasoline shouldn't have that much to do with jobs.
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nb52
Champion Author Grand Rapids

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Message Posted: Jul 6, 2009 6:37:13 AM

Lower gas prices are NOT bad for the consumer.
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Gas Slave
Champion Author Lansing

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Message Posted: Jul 6, 2009 6:37:06 AM

Might be a bad sign? Duh!
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katmandue
Champion Author Detroit

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Message Posted: Jul 6, 2009 6:28:56 AM

we still need to conserve more.
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neptune2008
Champion Author Michigan

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Message Posted: Jul 6, 2009 6:25:58 AM

ITS STRICTLY A VOTE THAT WE CANT FRIGGIN AFFORD IT...!!!!!!
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Paw5X
Champion Author Gary

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Message Posted: Jul 6, 2009 6:25:24 AM

We are spending a lot less than we were one year ago.

Remember those Four Dollar plus gallons of gas!
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LeeFree
Champion Author Pittsburgh

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Message Posted: Jul 6, 2009 6:25:13 AM

I'd like to see lower gas prices as a sign that we have alternative energy to run our cars and trucks and don't need gas and diesel anymore.
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Masercal
Champion Author Michigan

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Message Posted: Jul 6, 2009 6:22:40 AM

Gas prices are overinflated and need to fall a long ways. Continue to conserve and make the move to renewable energy today.
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lowerpetroprice
Champion Author New Hampshire

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Message Posted: Jul 6, 2009 6:20:43 AM

Good! It is ridiculous to continue gouing the American people with the ridiculous gas prices. Thanks to our new government!
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subnuke
Champion Author Atlanta

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Message Posted: Jul 6, 2009 6:19:53 AM

It is a vote against the obamanists.
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SCSDOG
Veteran Author Toledo

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Message Posted: Jul 6, 2009 6:18:42 AM

OBAMA has made sure of that
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whyus
Champion Author Atlanta

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Message Posted: Jul 6, 2009 6:18:28 AM

I love it even if it's bad.
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BM4225
Champion Author Atlanta

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Message Posted: Jul 6, 2009 6:17:38 AM

Well ours went up 2 cents since the 4th, so we must be getter better here, we have not reached 10% unemployment, just 9.6%.
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theduster1
Champion Author Texas

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Message Posted: Jul 6, 2009 6:15:57 AM

somebody please ezplain to me how lower gas prices are bad. other than the oil companies do not make as much money when gas prices are low
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ttwiw
Champion Author Austin

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Message Posted: Jul 6, 2009 6:14:27 AM

Obamenomics doesn't add up
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