We have been witnessing an important market lesson in gas prices.  The price per gallon at which the market triggers significant change is just shy of $4.00 per gallon.

Charles Krauthammer noticed the appropriate lesson:

"When oil is cheap and everybody wants a gas guzzler, fuel efficiency standards force manufacturers to make cars that nobody wants to buy. When gas prices go through the roof, this agent of inefficiency becomes an utter redundancy."

I remember reading a line out of one of George Gilder's books where he dismissed government's change influence compared to the market.  His point was that no command-and-control system can react and create the change that price can with brutal efficiency.

This morning I listened to and was impressed by this segment on oil supply factors.