| win wrote: |
| Here is a prediction that is going way out on a limb. All bubbles eventually burst and the most dangerous five words in investing are "this time it is different." When the commodity bubble bursts prices will come down dramatically. Just wait until China's 12% growth slows down to 8%. Let's resume this conversation in a year! |
Gonna take the Fed to stop printing the money too.. that or the domestic econ to turn back up (catch 22) and drag some of the hedge money out of crude and back into equities. Then perhaps OPEC would see fit to return to their hedging programs.
As to the original question - up until 2003/4 I would drive up for a week to 10 days then back home for a week or so. Rinse, repeat. About a 600 mile r/t and 30 gallons in the old SUV or 24 in the current ride. When gas (super unfortunately) was 1.50-1.75/gal this was no problem (other than the travel time) at roughly 45 bucks. With prices now around 3.50 ($85) I spend the majority of the winter up here - admitedly I do not miss the drive. But it is also the first year I didn't go to Jay, Stowe, Smuggs or Kmart for a change of pace. Likewise I think I only made two trips into Burlington.
So in my case I've adjusted along the way already and to some extent would continue to do so as the price rose, though there really isn't much more to be saved on travel alone. Eating/drinking out would probably be next in line.
As to $5/gal that would take crude to be between $175/200 a bbl given current and past refiner margins so we probably have some room to breath before that becomes a regular price.