Gas prices shot up in 72 hours, but history says the relief will take weeks. Here's the economic pattern behind every "hang in there" you've ever heard at the pump.
A reporter asked me about the impact on the electric car market, and I couldn't really give a good answer here. My normal answer is that it should cause more people to switch over, but car prices are so much higher than before that I'm not sure how realistic that switch is now.
Gemini says that a 5-7 year-old Toyota Prius Hybrid is your best bet, combining a low purchase price and long life with low fuel costs -- option of switching from gas to electricity based on cost at any given moment is also a plus. Reporters had forgotten about hybrids, but in the age of changing prices for both fuels, flexibility comes as a premium!
My current car is about 16 years old and is starting to get a little beat up. I've slowly been looking for a new-to-me car, but every time I see what used cars cost, I get a little sticker shock.
The extraordinary price of new cars is leading to an extraordinary increase in the price of used cars in the US. I am thinking of going to Mexico to buy a BYD electric car. This is highly illegal, so I assume there is a roaring business of Mexican citizens with US residency permits leasing vehicles to US citizens by getting a temporary import permit to the US and then switching them once a year.
i dont expect new\used cars prices to change much as long as employment is stable.
given current global overcapacity and trump's destruction of nafta for cars, i expect longterm prices to only go up as competitors decrease. (on a related note, broad industrials seem to be passing on cost SLOWER than their inputs rise)
I was lazy and stopped when I found the EIA article from 2022. I should have dug into their data for the most recent numbers. I've updated the chart to go through 2025.
Markets pay attention to what's urgent not what's important. I think this "Rockets and Feathers" relationship comes from investor sentiment, where geopolitical events can have unlimited downside, but recovery has limited upside.
An interesting question is the effect of these price shocks on renewable energy investment, especially given the politics of it now.
A reporter asked me about the impact on the electric car market, and I couldn't really give a good answer here. My normal answer is that it should cause more people to switch over, but car prices are so much higher than before that I'm not sure how realistic that switch is now.
Gemini says that a 5-7 year-old Toyota Prius Hybrid is your best bet, combining a low purchase price and long life with low fuel costs -- option of switching from gas to electricity based on cost at any given moment is also a plus. Reporters had forgotten about hybrids, but in the age of changing prices for both fuels, flexibility comes as a premium!
My current car is about 16 years old and is starting to get a little beat up. I've slowly been looking for a new-to-me car, but every time I see what used cars cost, I get a little sticker shock.
The extraordinary price of new cars is leading to an extraordinary increase in the price of used cars in the US. I am thinking of going to Mexico to buy a BYD electric car. This is highly illegal, so I assume there is a roaring business of Mexican citizens with US residency permits leasing vehicles to US citizens by getting a temporary import permit to the US and then switching them once a year.
i dont expect new\used cars prices to change much as long as employment is stable.
given current global overcapacity and trump's destruction of nafta for cars, i expect longterm prices to only go up as competitors decrease. (on a related note, broad industrials seem to be passing on cost SLOWER than their inputs rise)
i guess wait for a surprise recession.
Yes there's a lot of things pushing in different directions!
oil import 2022 end data seems rather stale.
I was lazy and stopped when I found the EIA article from 2022. I should have dug into their data for the most recent numbers. I've updated the chart to go through 2025.
Markets pay attention to what's urgent not what's important. I think this "Rockets and Feathers" relationship comes from investor sentiment, where geopolitical events can have unlimited downside, but recovery has limited upside.