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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honda0105 Champion Author Tallahassee Posts:8,170 Points:457,255 Joined:Nov 2008	Message Posted: Jul 7, 2009 6:05:57 AM Ignore honda0105 Report Abuse 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.
Blue48 Champion Author Illinois Posts:1,887 Points:500,025 Joined:Feb 2007	Message Posted: Jul 6, 2009 10:16:28 PM Ignore Blue48 Report Abuse 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
honda0105 Champion Author Tallahassee Posts:8,170 Points:457,255 Joined:Nov 2008	Message Posted: Jul 6, 2009 10:14:27 PM Ignore honda0105 Report Abuse large fluctuations are bad, but is this just a spin?
honda0105 Champion Author Tallahassee Posts:8,170 Points:457,255 Joined:Nov 2008	Message Posted: Jul 6, 2009 10:12:55 PM Ignore honda0105 Report Abuse lower gas prices hinders development of alternative energy sources. Nothing more, nothing less.
StuCoFromage37 All-Star Author Illinois Posts:689 Points:109,055 Joined:May 2009	Message Posted: Jul 6, 2009 11:05:24 AM Ignore StuCoFromage37 Report Abuse 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? :(
the1roadhog Champion Author Atlanta Posts:4,261 Points:911,480 Joined:Jun 2007	Message Posted: Jul 6, 2009 8:31:42 AM Ignore the1roadhog Report Abuse 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.
courier43 Champion Author New Jersey Posts:1,607 Points:900,780 Joined:Nov 2006	Message Posted: Jul 6, 2009 8:17:58 AM Ignore courier43 Report Abuse 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
kelsielee Champion Author Atlanta Posts:2,600 Points:497,540 Joined:Sep 2008	Message Posted: Jul 6, 2009 7:50:29 AM Ignore kelsielee Report Abuse 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).
Tnerbeel Champion Author Houston Posts:2,884 Points:604,360 Joined:Mar 2007	Message Posted: Jul 6, 2009 7:16:09 AM Ignore Tnerbeel Report Abuse You can find bad news in just about anything if you look hard enough and our media are experts at it.
BBHybrid Champion Author Pittsburgh Posts:2,419 Points:484,350 Joined:Aug 2008	Message Posted: Jul 6, 2009 7:09:11 AM Ignore BBHybrid Report Abuse We need lower gas prices to jump start the economy. Obama should act on this and help the US out
olcowboy14 Champion Author Spokane Posts:3,813 Points:617,225 Joined:Jul 2007	Message Posted: Jul 6, 2009 7:05:15 AM Ignore olcowboy14 Report Abuse 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.
wegman Champion Author Twin Cities Posts:2,074 Points:959,035 Joined:Jun 2001	Message Posted: Jul 6, 2009 7:04:40 AM Ignore wegman Report Abuse 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.
ldr1 All-Star Author Denver Posts:536 Points:53,240 Joined:Sep 2006	Message Posted: Jul 6, 2009 7:00:35 AM Ignore ldr1 Report Abuse conserve .. and drill baby drill..
leeso1 Champion Author San Diego Posts:1,670 Points:267,970 Joined:May 2009	Message Posted: Jul 6, 2009 6:58:03 AM Ignore leeso1 Report Abuse BS
snell snail Champion Author Atlanta Posts:1,821 Points:1,546,450 Joined:Feb 2004	Message Posted: Jul 6, 2009 6:54:04 AM Ignore snell snail Report Abuse ...faulty analysis & conclusion....
Beboper Champion Author Virginia Posts:2,890 Points:1,012,310 Joined:Oct 2005	Message Posted: Jul 6, 2009 6:53:52 AM Ignore Beboper Report Abuse old news
DrivingFool2 Champion Author Wisconsin Posts:2,581 Points:474,460 Joined:Apr 2005	Message Posted: Jul 6, 2009 6:53:40 AM Ignore DrivingFool2 Report Abuse 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.
JCUBE Champion Author Michigan Posts:2,704 Points:785,890 Joined:Aug 2003	Message Posted: Jul 6, 2009 6:52:56 AM Ignore JCUBE Report Abuse 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
gabbygusIN Champion Author Indiana Posts:1,514 Points:425,400 Joined:Oct 2008	Message Posted: Jul 6, 2009 6:52:30 AM Ignore gabbygusIN Report Abuse Lower price at the pump = better for the economy!
abuck Champion Author Pittsburgh Posts:2,150 Points:419,075 Joined:Jul 2008	Message Posted: Jul 6, 2009 6:51:29 AM Ignore abuck Report Abuse And this is a shock how?
thwadi Champion Author Cleveland Posts:2,063 Points:500,755 Joined:Mar 2008	Message Posted: Jul 6, 2009 6:50:50 AM Ignore thwadi Report Abuse No shortage of idiots writing articles.
NJColt Champion Author New Jersey Posts:6,965 Points:1,499,455 Joined:Aug 2005	Message Posted: Jul 6, 2009 6:50:07 AM Ignore NJColt Report Abuse 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.
cathevan Champion Author Manitoba Posts:1,902 Points:472,195 Joined:May 2007	Message Posted: Jul 6, 2009 6:49:58 AM Ignore cathevan Report Abuse old news
bumpygas Champion Author Nebraska Posts:2,698 Points:790,800 Joined:Oct 2007	Message Posted: Jul 6, 2009 6:49:37 AM Ignore bumpygas Report Abuse 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.
sing_1 Champion Author Florida Posts:1,027 Points:261,210 Joined:Sep 2007	Message Posted: Jul 6, 2009 6:49:28 AM Ignore sing_1 Report Abuse Continue to encourage research into alternative fuels.
colt453162 All-Star Author Houston Posts:577 Points:244,785 Joined:Mar 2008	Message Posted: Jul 6, 2009 6:46:52 AM Ignore colt453162 Report Abuse 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.
RichardoB Champion Author North Carolina Posts:2,045 Points:893,085 Joined:Jun 2007	Message Posted: Jul 6, 2009 6:45:57 AM Ignore RichardoB Report Abuse 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.
jmg144 Champion Author Maryland Posts:6,689 Points:1,858,505 Joined:Jul 2004	Message Posted: Jul 6, 2009 6:45:01 AM Ignore jmg144 Report Abuse Doubtful oil prices will drop to 70's level ever. Key issue is volatility for the next five years.
tankneverfull Champion Author Charlotte Posts:3,352 Points:655,395 Joined:Apr 2008	Message Posted: Jul 6, 2009 6:44:55 AM Ignore tankneverfull Report Abuse 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.
pitamon Champion Author Philadelphia Posts:2,012 Points:1,108,645 Joined:Sep 2004	Message Posted: Jul 6, 2009 6:44:40 AM Ignore pitamon Report Abuse Conservation!
dhawk24 Champion Author Maine Posts:2,214 Points:507,760 Joined:Jul 2008	Message Posted: Jul 6, 2009 6:43:31 AM Ignore dhawk24 Report Abuse Down is good..
cheapertvs Champion Author Richmond Posts:4,286 Points:1,592,170 Joined:Jan 2004	Message Posted: Jul 6, 2009 6:42:27 AM Ignore cheapertvs Report Abuse 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.
vamike Champion Author Virginia Posts:1,256 Points:316,670 Joined:Dec 2008	Message Posted: Jul 6, 2009 6:42:24 AM Ignore vamike Report Abuse Hey, big surprise. The experts were wrong again.
BigDogOH Champion Author Cincinnati Posts:2,750 Points:673,970 Joined:Mar 2008	Message Posted: Jul 6, 2009 6:42:20 AM Ignore BigDogOH Report Abuse Lower pump price is GOOD were I come from
mandoid Champion Author Colorado Springs Posts:2,254 Points:459,760 Joined:May 2008	Message Posted: Jul 6, 2009 6:41:44 AM Ignore mandoid Report Abuse investor and business news. we need to drill locally and put these people in private sector jobs
VetteFan Champion Author Indiana Posts:4,001 Points:892,550 Joined:Aug 2005	Message Posted: Jul 6, 2009 6:37:25 AM Ignore VetteFan Report Abuse 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.
nb52 Champion Author Grand Rapids Posts:2,043 Points:415,785 Joined:Nov 2008	Message Posted: Jul 6, 2009 6:37:13 AM Ignore nb52 Report Abuse Lower gas prices are NOT bad for the consumer.
Gas Slave Champion Author Lansing Posts:2,491 Points:616,925 Joined:Jul 2004	Message Posted: Jul 6, 2009 6:37:06 AM Ignore Gas Slave Report Abuse Might be a bad sign? Duh!
katmandue Champion Author Detroit Posts:2,277 Points:999,605 Joined:Jul 2006	Message Posted: Jul 6, 2009 6:28:56 AM Ignore katmandue Report Abuse we still need to conserve more.
neptune2008 Champion Author Michigan Posts:2,762 Points:543,725 Joined:Aug 2008	Message Posted: Jul 6, 2009 6:25:58 AM Ignore neptune2008 Report Abuse ITS STRICTLY A VOTE THAT WE CANT FRIGGIN AFFORD IT...!!!!!!
Paw5X Champion Author Gary Posts:4,954 Points:1,416,835 Joined:May 2005	Message Posted: Jul 6, 2009 6:25:24 AM Ignore Paw5X Report Abuse We are spending a lot less than we were one year ago. Remember those Four Dollar plus gallons of gas!
LeeFree Champion Author Pittsburgh Posts:3,541 Points:1,124,400 Joined:Jun 2005	Message Posted: Jul 6, 2009 6:25:13 AM Ignore LeeFree Report Abuse 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.
Masercal Champion Author Michigan Posts:3,335 Points:720,440 Joined:Oct 2007	Message Posted: Jul 6, 2009 6:22:40 AM Ignore Masercal Report Abuse Gas prices are overinflated and need to fall a long ways. Continue to conserve and make the move to renewable energy today.
lowerpetroprice Champion Author New Hampshire Posts:2,845 Points:579,855 Joined:Jul 2008	Message Posted: Jul 6, 2009 6:20:43 AM Ignore lowerpetroprice Report Abuse Good! It is ridiculous to continue gouing the American people with the ridiculous gas prices. Thanks to our new government!
subnuke Champion Author Atlanta Posts:2,043 Points:419,235 Joined:Sep 2008	Message Posted: Jul 6, 2009 6:19:53 AM Ignore subnuke Report Abuse It is a vote against the obamanists.
SCSDOG Veteran Author Toledo Posts:352 Points:776,875 Joined:Apr 2004	Message Posted: Jul 6, 2009 6:18:42 AM Ignore SCSDOG Report Abuse OBAMA has made sure of that
whyus Champion Author Atlanta Posts:4,203 Points:906,885 Joined:Feb 2007	Message Posted: Jul 6, 2009 6:18:28 AM Ignore whyus Report Abuse I love it even if it's bad.
BM4225 Champion Author Atlanta Posts:4,586 Points:1,005,320 Joined:Aug 2006	Message Posted: Jul 6, 2009 6:17:38 AM Ignore BM4225 Report Abuse 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%.
theduster1 Champion Author Texas Posts:1,411 Points:315,390 Joined:Apr 2008	Message Posted: Jul 6, 2009 6:15:57 AM Ignore theduster1 Report Abuse 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
ttwiw Champion Author Austin Posts:1,412 Points:769,815 Joined:Sep 2005	Message Posted: Jul 6, 2009 6:14:27 AM Ignore ttwiw Report Abuse Obamenomics doesn't add up