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.
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Originally posted 2008-11-07 05:10:16. Republished by Old Post Promoter
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Tags: economic damage, economic situations, fears, financial markets, gas containers, gas prices, grocery store, gulf coast, household, hurricane, mentality, natural disasters, necessities, offshore oil rigs, panic mode, pumps, shock, tanks, worst case scenario