Gasoline Will Be $5.00 A Gallon Next Year

So says economic Guru "Mad Money" Jim Cramer on the Today Show this morning. I think he might be too conservative in his estimate. I've heard other anslysts say that gasoline could reach double digits per gallon in a few years. Yes, that's $10.00 a gallon or more! Americans are in for a major shock and awakening. Cramer said that many businesses will fail because of the gas price increase. That's an understatement. What will happen to the domestic auto industry when sales of gas guzzlers fizzle because people will finally do what Europeans have been doing for years: start driving small, energy efficient cars. There will be so many Hummers, giant pickup trucks, and SUV sitting idle that there will not be enough junk and scrap yards to handle them all. Also, just think about the effect on food prices as the trucking industry passes on the increased fuel prices to American consumers. Maybe rising fuel prices will kill off trucking and force this country back to mass transit and railroads. We can hope, but there is going to be a lot of pain along the way.

PHOTO: The fixed-up Fire Island Pines Pizza And Bistro

Jim