Comments on: Price of Oil Goes Down Yet Cost of Food, Commodities and Other Services Stay Put. What’s Up?

By: Rhiannon B

Rhiannon B — Tue, 30 Dec 2008 10:26:44 +0000

The prices are at what your willing to pay for it. Stop buying and prices will suddenly be more attractive.

By: Chase U

Chase U — Tue, 30 Dec 2008 01:37:27 +0000

I’ve been thinking about this too, it’s funny you’ve asked it. I’m a little confused on the matter myself. It’s scary how volatile major economic markets have been and they’re seemingly spontaneous spurts up and down have been chaotic. I think the Middle East oil companies have the US by the balls so to speak and control prices as they think they ought to be. I haven’t done much reading or reasearch on the matter yet but I’m going to be interested to see what’s happening here.

I think the biggest flaw of what’s going on is the American dependence on Middle Eastern oil. That is so fundamentally screwed up that we’re basically relying our entire nation’s productivity to foreign people who own oil companies. We need to utilize a better source of energy. This country is a mess…

By: Art V

Art V — Mon, 29 Dec 2008 13:31:36 +0000

Absolutely.

The term is “sticky prices”; and a quick definition is a slow response to changes in supply and demand for a commodity or inputs to a commodity.

Here’s a pretty good link:

*** Although this is a possible cause — you are right, something does smell!