| May. 13th, 2008 @ 07:43 pm Hard Times Behind the Pumps |
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Current Mood:  thoughtful
One thing I was surprised to note last weekend was the number of foreclosed or abandoned gas stations (at least that's what I assume when I see big signs seeing "CLOSED" and "Beware of Dog"). I passed two within a few blocks of eachother before I found a place to fill up the U-Haul.
Guess that makes sense: Higher prices drive up price competition, which lowers margins. Some businesses succumb to the pressure. A failed business can't come right back, so as soon as one folds, its neighbors breathe a sigh of relief and raise prices again (to the original levels or higher).
Oil hit $128 today, but it's currently hovering just below $126. |
calm
jubilant