Rarely do I comment on political issues in this blog, but this really has more to do with business. I watch a lot of cable news and what really strikes me is how dedicated to tragedy the media seems to be these days. They have been talking down the housing market like crazy, to the point where you have to give your house away in most markets. Oil prices are through the roof, and this too leads the news because it’s more bad news for you to eat up and accept. Well, I don’t accept it. Perhaps I know something all of the talking heads don’t know. Perhaps they are so out of touch they have forgotten the golden rule of capitalism… the marketplace sets the prices. Next time you think the world is ending, and gas is going to reach $10/gallon, please remember that.

I guarantee that gas prices will not drift much pass the $5 mark, if it gets that high at all.  Ok, I can’t guarantee it, because I don’t have that much to offer you if I am wrong, but at least consider the possibility. People tend to believe that the market is manipulated by a bunch of rich dudes in a mansion on the hill. To some degree that may be true, but the market always has the last word. Eventually people will say NO to buying gas at a certain price, and the prices will come down. If your facility made widgets that were in very high demand, you would probably start to push the price up with the demand. However, if you pushed it too high, and people started buying less of your widgets, you would adjust the price. You would have to, or you would be sitting on a lot of widgets. The same rule applies to every commodity in a free market.

Now I am not denying times are tough. My wife and I have had our condo on the market for nine months, and I have a 70 mile commute each day, so I am feeling the pain too. I just am a bit more optimistic than many people out there. Unfortunately, if you’re waiting for the government to help, it’s not going to happen. Anything they could do would be superficial anyway. The answer is in the marketplace, and when the time is right, it will say “uncle”.