Yesterday, the Washington Post reports that oil executives were marched up to Capitol Hill for their ritual slaughter before elections in November. But nothing will come out of it. Is this merely political posturing? Will the politicians actually do anything to force companies to ease consumers' pain at the pump? Should they? Yes, No, and No.
It is merely political posturing. Politicians can't afford to cut into the profits from the oil companies because the oil companies are partially responsible for financing their re-election campaigns. Politicians will not actually force the companies to do anything to ease consumers' pain. Some – such as Massachusetts legislators – are talking about ways to increase consumer's pain by raising gasoline taxes.
One oil executive said: "Consumers have the choice to drive less." I think this is a ridiculous, insulting statement. It makes as much sense as saying to oil executives that they have the choice of giving their annual salaries and other compensation to charity. It is theoretically possible, but it is not in their self-interest. Therefore it won't happen.
One day after Election Day and everything is upside down on Capitol Hill. The market's knee-jerk reaction today was a drop in defense stocks and pharmaceuticals due to the Democrats contrarian stance on issues key to those industries.
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
