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December 15, 2014 / Ryan Edward Roberts

Free Market Oil Freefall


The same talking heads on tv that are always preaching the virtues of the free market are now the same ones saying that the falling oil prices are bad for the economy.

It seems to me that most of the news channel folk have no idea of reality. I heard one Wall Street corespondent say that “well these lower oil prices aren’t really saving anyone that much money”. Seriously?! He probably lives in New York City and never drives because he commutes to work on the subway, or he is so rich he wouldn’t notice anyway. I know my cost of driving to work has cut in half, which is huge to me.

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What they really mean when they claim that these lower fuel prices are bad for the economy is it is bad for their stock portfolio. It is market speculators who are largely responsible for driving the prices of oil up to start with. Now they are losing money so they are crying it is bad for the economy.

It’s called “supply and demand”. Economy 101. Demand is down, supply is excessive, prices will go down. Let the free market take care of itself. They need to put their money where their mouths are. Do they really believe in a free market, or only when it is making them money?

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