Tuesday, January 20, 2009

Prices Came Down, So Why Didn't Prices Come Down?

So when fuel prices jumped, the commercial sector raised prices to compensate. That was understandable, considering how our products are transportation based.

For instance, my fuel prices are way down from $5 a gallon here in the Bay Area to just around $2 a gallon.

Now that fuels costs are back down, why haven't our commercial goods prices coming down too? They used fuel prices as their reason for raising their prices. That's no longer an issue... for now. Maybe they should adjust accordingly.

Of course this then brings to mind a quote, purportedly by Alexander Fraser Tytler (1747–1813):

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years."

Which reminded me of when I saw this recession coming in late 2005 when I was in the real estate industry. Home owners being greedy, real estate agents being greedy, lenders being just as greedy... No one was putting up a hand of caution to anyone else because the bottom line drives folks to stay within their own sphere of financial survival. Most can only see what they can hold in their own hand. It was a wonderful cycle to watch and I lept from the plane before it imploded completely, as it has.

Is that the tip of the iceberg? I hope not, but come on. Some things are inevitable. Once gravity takes hold, there is only so much one can do while falling, and falling up isn't one of them.

[quote from Quoteland.com]

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Hi - sorry for the confirmation but I need to weed out the noise from the well intended comments. Thanks for leaving a note... - Bruce