Gasoline prices keep falling like a rock

While everybody bounces between agony and ecstasy over the (seemingly) excruciatingly slow process of the big bank bailout, meanwhile consumers are (silently) reaping the benefits of the crude oil and wholesale gasoline "bailout" of speculators -- "bailout" as in the speculators are bailing out of their positions and the prices of crude oil and wholesale gasoline have been falling like a rock, although they did bounce strongly today. Crude oil is still down around $82. Retail gasoline price declines have continued to accelerate, with the AAA Daily Fuel Gauge Report price falling over 4 cents today to $3.206.

November RBOB unleaded gasoline futures are at $1.9428, indicating that retail prices are headed for $2.54 to $2.59 within a few weeks, about 65 cents below the current price level.

The media is not giving these gasoline price declines much press, but all of this extra cash in the pockets of consumers will help to buoy consumer sentiment and domestic spending as well as boosting GDP by reducing the subtraction due to imports of crude oil. Businesses and government will benefit from the steep price declines as well.

-- Jack Krupansky