Friday, May 12, 2006

Déjà vu All Over Again

At 6 a.m. yesterday morning, I noticed the price of regular gas at the local Cumberland Farms was $3.04 a gallon—up five cents from the day before.

When I got to the coffee shop, the first thing the barista asked me was, “Are they going to stop raising rates?” I told him it looked like they were going to raise one more time. He shook his head and made my drink. He’s a real estate broker on the side, you see—he works at Starbucks for the healthcare. And his real estate business has collapsed.

Later, on the way home, the price of regular gas at the same Cumberland Farms had risen to $3.16 a gallon.

The last time I remember a bull market in interest rates and gasoline was, oh, 1979. It was like déjà vu all over again.

Jeff Matthews
I Am Not Making This Up

© 2006 Jeff Matthews

The content contained in this blog represents the opinions of Mr. Matthews. Mr. Matthews also acts as an advisor and clients advised by Mr. Matthews may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Matthews' recommendations.


Idaho_Spud said...

Your barista is going to learn firsthand the meaning of a word he slept through in US history class: Stagflation.

Suita_Steve said...

Bring back Jimmy Carter, and we'll be all set!

zephyr said...

On an inflation adjusted basis the cost per mile for the average driver is about the same today as it was in 1979(about $0.15 per mile).