Network Doomsday Warnings Run Out of Gas

Free Market Project ^ | 6/1/2005 | Amy Menefee

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Gasoline prices actually fell during the week leading up to Memorial Day, but broadcasters reminded drivers of ‘record highs.’

Memorial Day weekend brought the usual slew of news reports about driving, and network reporters seemed stumped that drivers would keep driving despite the price of gas. What they didn’t point out was that gas prices actually declined going into the holiday weekend.

Rewind to April 10, 2005, when CBS’s Trish Regan made a dire prediction on the “Evening News”: that the “national average on a gallon of gas expected to hit $2.50 a gallon by Memorial Day.” That prediction wasn’t attributed to the government or an oil industry analyst, and it turned out to be far from the truth. The national average for the week of Memorial Day was about $2.09 per gallon, according to the U.S. Energy Information Administration. That was down almost 3 cents from the previous week and almost 20 cents lower than April’s price spike.

Regan also said on that broadcast, “As costs go up, consumers, who are already getting hit themselves at the pumps, may decide to cut back on their personal spending.” Anchor Mika Brzezinski added that “consumers cutting back can’t bode well for the overall economy,” and Regan piled on: “Keep in mind that consumers account for two-thirds of the overall economy. So without them, you pretty much haven’t got much.” Despite this broadcast gloom, consumer spending continued a steady increase at 0.6 percent in April.

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So, it's all scary when gas prices rise, but when they fall...it's still scary.

I feel like a commercial for "Oil Storm."

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This "article" is as stupid as the media sources it criticizes.

Crude futures were up $2.75 today and $7 in 1 week. 10 days from now, gas prices at the pump will jump once again. Crude is also less than $4 from all-time highs, just as Wall St. is calling for $40-45 crude by the end of the year.