Democrats better quit calling for independent reports

[dude1394]

Everytime they do another fantasy is dispelled. Since they don't understand economics, or probably (assuredly) just like to try and make themselves sound relevant they launced an investigation into gas prices. Must be cheney! Big Oil! Greedy,greedy corporations!!

Nah..economics, who woulda' thought it.....sane people would.

http://www.nypost.com/seven/09092007...ic_gasbags.htm

Last summer, Congress again called on the FTC to investigate.

Last month, the agency issued its report. The findings? Last year's spike was caused by . . . market forces.

That mirrors its 2006 report, which similarly found "no evidence of manipulation" in the post-Katrina price jumps.

The problem, instead, was a series of simultaneous events: climbing crude prices, refining capacity that had been reduced by storm damage and increased U.S. demand for gasoline.

That's not to say that only supply and demand are to blame. The reports also finger congressional policies - specifically regarding ethanol.

Last summer, refiners were essentially forced to start using more of the corn-derived additive, nearly doubling its cost per gallon. Demand for ethanol became so intense that refiners began importing almost 20 percent of their supply, despite a 54-cent-a-gallon tariff.

Obviously, the added cost got passed along to the pump.

Not that these lessons are ever internalized: When prices were rising this spring, Sens. Schumer and Hillary Clinton issued - what else? - demands for investigations into Big Oil.