Is the high cost of gasoline causing the stock market , interests rates or the economy to suffer in any way?
（Is there a small chance that the stock market , interest rates, and the economy could actually suffer because of the high price of gas?）
Answer：
Yes.
A Box of Chocolates going from Los Angeles to New York costs $100.00 USD with Oil at $50.00 USD.
This box is moved by truck and trucks use diesel.
A Box of Chocolates going from Los Angeles to New York costs $110.00 USD with Oil t $100.00 USD.
This problem can be solved only in two ways:
1) The company reduces their profits by $10.00 USD and the CEO gets fired.
2) The company increases their profits by $10.00 USD and the CEO gets a $100,000,000.00 USD bonus.
Let’s imagine you are the CEO and you choose the second option.
You don’t need to be an expert in economics to understand the first option reduces the stock price and the second options increase the stock price.
A Box of Chocolates going from Los Angeles to New York costs $100.00 USD with Oil at $50.00 USD.
This box is moved by truck and trucks use diesel.
A Box of Chocolates going from Los Angeles to New York costs $110.00 USD with Oil t $100.00 USD.
This problem can be solved only in two ways:
1) The company reduces their profits by $10.00 USD and the CEO gets fired.
2) The company increases their profits by $10.00 USD and the CEO gets a $100,000,000.00 USD bonus.
Let’s imagine you are the CEO and you choose the second option.
You don’t need to be an expert in economics to understand the first option reduces the stock price and the second options increase the stock price.
Posted: July 27th, 2010 under US Stock Market.
Tags: gasoline causing the stock market, Stock market