San Diego Housing Bubble News and Analysis

If the increase from $2.30 to $4.50 was a significant economic burden (and it was), then the decline to under $2 should provide a significant stimulus to the economy.

The US consumes 390 million gallons a day in gasoline. At $2 per gallon this is a savings of over $5 billion per week.

In addition the oil used on a daily basis in the US about half is used for Gasoline.

So, a $2 per gallon change in prices (and a similar change in oil prices) impacts the economy somewhere in the ballpark $10 billion per week.

Having that excess $10B burden per week removed compared to where we were in the Spring should be a significant boost to the economy. (Or at least a larger pail to use for bailing).

This is exactly what my wife and I were talking about last night, the fact that now that gas prices have dropped to reasonable levels more people will abandon their conservation approach.

True, I think some people will conserve less. Particularly those who are employed and higher on the economic food chain. Others will see it as a gift and use the savings to buy food, clothes or toys for their kids.

Sweet! I was just about to curb my addiction to crack, but since prices have dropped, fuck that! Smoke away my crack fiends!

Kinda doubt the concept of peak oil has gone away just because a recession has dampened demand. But most people will behave according to their paycheck. Since that's how they live from month to month.

I haven't increased my usage any on a normal day to day basis, but I am taking advantage an planning a road trip in January.

It's been a boon for my battered wallet, even if traffic has gotten a bit worse since the SUVs came out of hibernation.

I drive a bit more. But $2.00 gas isn't enough to convince me to move out to commute from Murrieta :)

I'm looking for a new Escalade (just kiddin, I'm far too cheap to buy a car like that)

Too bad conservation will take a hit.

Conservation is a lifestyle. I see a lot of wasteful behavior out there. I personally take care to turn off the lights in empty rooms and not waste water. I drive a small car. I don't waste food and I eat everything on my plate.

It looks like gas prices, adjusted for inflation, are headed to what? 1990 prices?

Would house prices head that way also?

It's got you written all over it :) You need to get those mad bling bling chrome 22" with spinners, gold trimmings. And a vanity plate that says

"SDRE4ME"

Better be careful though. The other SDR might take that :)

I brought my toyota into the dealer this weekend for an oil change. i have a 2003 tacoma with about 80,000 miles on it. I still haven't had a major fix it bill. It's been great.

Anyhow, a guy from toyota called me yesterday (the same dealer), stating that he knew I brought my vehicle in for a service. He then asked me if I was interested in trading my truck in. That Toyota has some great deals. That they need business and they are hurting (left this on my voicemail).

He started talking about all the 0% financing they have, great trade in rates, etc.. bla bla bla..

Does anyone know if Toyota is in trouble too?

I would hate to see us stop looking for more sources of energy including nukes. I would like to end foreign domination of oil for us by looking at alternatives and building cars that are more fuel efficient, but not ugly. See previous comments by TG on birth control cars. I still see fewer large vehicles and traffic has been about the same for me.

i vote for none of the above.

lower gas prices, i'm afraid, are going to sap the political will to move toward alternative energy sources. we need to slap a great big fat tax on gasoline (not jet fuel, etc.) and then increase the deduction for work miles. only then can we maintain pressure to move away from dependence on oil altogether (foreign AND domestic). or else, when the economy start back up again, we'll be subject to the same price spikes as before.