With the recent rise in gas, the issue of extraordinary oil company profits is likely to come up again in the next earnings period, especially given that we are approaching an election year. Every politician worth his salt will be out trying to prove that they are earning their keep as politicians by regulating people who are making too much money (excepting themselves of course – they work hard!). Oil companies are an easy target – anytime a company makes billions in profits, they become a target (ask Microsoft about being a target!), and when those billions represent money spent by the average American to fill up his car, that’s even better. It’s the golden goose of politics – hold public hearings on excessive profits and promise to do something about it until they pay you off or you get re-elected. I believe Stephen R. Covey would call that a “win-win”.

All sarcasm aside, I read an interesting article from one of my favorite sources – the Investment U – about this topic with a spot-on analysis of the issue. It’s the government that should be paying on excessive profits, not private businesses. The nerve of those guys…

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