Loanio

Stockpiling can adversely affect prices.

As Hurricane Ike took aim for the Gulf Coast, the financial markets reacted much in the way that they were expected to. Gas prices jumped to $5 a gallon along the gulf coast, and many expected the price jump to go nationwide, particularly if the hurricane caused damage to any offshore oil rigs. Since the industry in the area was still reeling from the effects of Hurricane Katrina, it comes as no shock that the worst case scenario was trotted out with the approach of Ike.

But, what does this mean for the average consumer? How badly will prices be affected by another adverse event? We’ve seen the economic damage caused by Hurricane Katrina, so we have some form of basis to go on as to what to expect, but that does not mean that panic is necessary. There are a few things the average household can do to shore up their own defenses against natural disasters, whether they hit right at home, or thousands of miles away.

Panic is an ugly thing, and as people raced to the pumps to fill up their tanks, it is apparent that fears over even higher gas prices are running rampant. It is important to stock up on necessities such as fuel, but going into a panic mode over it is certainly counterproductive. Preparation is very important but the key is remaining calm. Panic serves only to weaken economic situations, and by looking at the issues rationally, you can rise above this problem and come out on top.

If you have extra gas containers, there is nothing wrong with stocking up, but hording is not recommended. This serves only to impact the overall balance of supply versus demand and can actually make prices worse. Stocking up on other necessities is also a good idea, but again, within reason. There is no need to run and clean out the grocery store and give into that panic mentality.

Preparing for natural disasters should be done well before they strike, no matter where you live. By waiting until the last minute, consumers can end up overspending, only to find that there was no real reason for all of their upset. If you are in the path of a natural disaster, or your area is at risk, keeping a special disaster kit is the perfect response to this problem. Preparing ahead of time, while prices are low and panic is not present, will help consumers beat the common problems of panic-fueled prices.

In today’s society, there is definitely a raised awareness of how disasters, both manmade and natural can affect us all. Preparing is essential, there is no doubt about that. However, the key to getting ready is taking the time to stock up before disaster strikes, so that when it does, you have everything you need on hand. This will help you save money, reduce overall stress and keep you prepared for any eventuality, and without putting you through the paces of panic.

Photo Credits: 1

Originally posted 2008-11-07 05:10:16. Republished by Blog Post Promoter

• Finding a Legitimate High Yield Investment Most people hear the words High Yield Investment Program, or the acronym HYIP, and many of them quiver. This is not completely unnatural, because high yield investments only come with high risks, and most HYIP opportunities are not even legitimate to begin with. There are simply too many people out......
• Loanio Roundup - Wall Street Crisis and the Resilient Dollar /caption] Welcome to the second edition of the Loanio Roundup. This edition focuses heavily on the national economy and peer-to-peer lending news. We hope you enjoy pursuing through the links below. Leave a comment and tell us what you think - we'd love to hear your views on the Wall......
• Breaking Down Budgeting A personal budget is simply a spending plan. Before you work on personal budget planning you need to have a good idea of where and how your money is being spent. It can be a tedious process, but it can also be a true eye opener if you are not......
• Do You Ask Yourself, How Do I Plan for Retirement? /caption] Don't you think that every working man and working woman is entitled to enjoying a secure and comfortable retirement once they are no longer working? Due to the fact that we have taken so many strides in health care and in medicine, many people are living longer and healthier......
• Personal Budget Planning is Crucial! [/caption] Personal budget planning is absolutely crucial if you want to build personal wealth and overcome things like the credit crunch and the current problems that the economy is experiencing. The word "Budget" is one that worries a lot of people because it often seems more like a hassle and......

• Would You Ride A Scooter To Save Money On Gasoline? Before we left California, we were seeing an increasing amount of of small scooters on the road, as people are trying to escape the $5.00 per gallon gas prices. Small, nimble, and definitely good on gas, it's no surprise there is more and more interest in these small motorcycles/oversized......
• Why You Should Avoid the Overhyped, Breaking News Stocks Believe it or not, there are a select group of unscrupulous business persons and Wall Street traders that will overhype a news event just to get you to buy their sh*t. If you aren't aware that such people exist in this world, allow me to tell you a very quick......
• What Exactly is an Oil Speculator? You've heard the buzz word "oil speculator" shouted from the high heavens of Capital Hill, you've seen Americans at the gas pumps blaming these anonymous likely Caucasian men in suits for the high oil prices we are "suffering" with these days, but have you stopped to actually learn what......
• Sunday Money Roundup - Away But Not Gone Edition. Sure, I might be in Boston but that doesn't mean I haven't been reading the PF sites! Here are some favorites of mine from over the last week: Sun's Financial Diary discusses calculating one's personal rate of return. If you invest and are looking for info on how to figure......
• Ooo, maybe I will buy some more stocks after all This little announcement from Zecco appeared in my email a couple of days ago: "October will be a 100% unlimited free trading month for current Zecco Trading customers". "Ooo," I thought, "maybe I will buy some more stocks after all." Yes, I'm waffling some more. You see I have this......