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Wednesday, August 29, 2007

Katrina

For all the solemn things we learned in the Katrina aftermath, we also learned a less profound thing - that supply and demand is a powerful force. Everyone talked about escalating gas prices post-Katrina throughout the US. But almost no one mentioned the fact that, in New Orleans, gas prices did NOT start rising for 6 weeks or more after Katrina - largely due to the decrease in demand due to the deaths and displacement to other parts of the country:
Notice the increased New Orleans volatility as well....