Oil prices drop. Gasoline prices rise. The scissors demand supply from no one, answers only to quiz number one. Gotcha, it is more complicated than that, what with transit time, difference vectors. Yep gottit. Stop using the supply and demand blind fold. Particularly if you know that it is more complicated than that.

the news from wall street this morning sounds right, somehow. Yep the market fails every three years, or there abouts. It has for most of my life and probably all of your life. I say probably, because if this seems new to you, then you haven’t taken a long look at how these things happen, nor to whom.

The deep theorists of economics. The professors who make their money by telling you tales in school, by taking big consulting fees, by shrugging when their answers fail.
The ones whose work is convincing themselves and you that they are working. Well, these professional professors offering of advice would be that the failures are do to a poorly run government. All market failures are a failure of government. this means that the government has intervened, thereby ruining the market balancing, while juggling, high wire act. A better course would be to let the banks issue their own money. That way they would watch its value better than a central government.

Remember these failures, and their map of solution the next time you hear the chant from the halls. “It’s a matter of supply and demand.”

A science based on homilies is only good for needlepoint. Someone always gets stuck.