New record!

Oil hits record high, hurting nearly all
By JEANNINE AVERSA, AP Economics Writer
Mon Mar 3, 2008
WASHINGTON - The price of oil gushed to a record high Monday, spreading dangerously to factories, groceries, gas stations and every citizen's pocketbook.

Note: this is a new real high, in inflation-adjusted dollars.

Oil prices marched past $103 a barrel on Monday, the latest in a recent string of record-high oil prices, before settling at $102.45.

Not surprisingly, the high price of oil is being felt throughout the economy.

Builders are building less, the government reported. Manufacturers are cutting back, another report said. General Motors Corp. and Ford Motor Co. said they would cut second-quarter production.

The galloping energy prices are doubly painful as the nation teeters on the edge of recession: High energy costs push companies to charge shoppers higher prices, then those consumers and businesses cut back in turn, dumping more cold water on the economy.

... and, for what it's worth, we get yet another example of the wonders of the marketplace:

Automakers suffer February double whammy
By DEE-ANN DURBIN, AP Auto Writer
3 March 2008
DETROIT - Automakers got hit where it hurts in February, with U.S. sales of their most profitable vehicles — trucks, sport utilities and large sedans — plunging as consumers reacted to high gas prices and the possible recession. General Motors Corp. and Ford Motor Co. announced second-quarter production cuts in the face of the falling sales.

Recall: these are the companies that have strenuously fought improved mileage standards. They really like building big gas-guzzlers!... even tho'

Surprise!
... GM reported strong sales of its fuel-efficient models. Sales of the Chevrolet Cobalt were up 56%, and sales of the Pontiac G6 were up 50%.

No - private enterprise is NOT inherently efficient... or even all that bright!

Stop the madness!