Speaking of Delusional: The U.S. Consumer

"DETROIT (Reuters) - U.S. consumers bought vehicles with big, gas-guzzling engines at an unchanged rate in the first three months of the year despite rising gas prices, according to a survey released on Monday.

In the first quarter, about 25 percent of all new vehicles sold in the United States were equipped with eight- cylinder engines, according to sales trends analyzed by the Power Information Network, a data tracking service of consulting firm J.D. Power and Associates."

Consumers, it appears, are still purchasing 8 cylinder engines for their commute. Gas prices are going to continue to rise until people start making different purchasing decisions; that is, they will rise to "whatever the market will bear." It seems the U.S. Consumer is under the delusion that they can continue their same behaviors (purchase V8's), but that somehow oil companies will change their behaviors (raising prices).

Supply and demand folks. Enjoy the $4 gas this summer.