According to the Associated Press the two issues are connected “psychologically,” but I think the real link between the two is too much government.

The finance crisis was created by crony capitalism (corporate big wigs making short-sighted decisions because they rely on their high-power lobbyists and paid-off friends in Washington to bail them out) and too much government intervention (such as HUD requiring Fannie Mae/Freddie Mac to give marginal loans out on low-value manufactured homes).  Without those things, we wouldn’t be in the mess we’re in now.

Gas shortages in the southeast, on the other hand, are being created by government mandates against “price gouging.” As I’ve explained before, there has been a political movement in the southeast for the past several years to outlaw and prosecute businesses (including gas stations and supermarkets) for raising prices during times of emergency such as natural disasters.  But here’s the thing: In the midst of disasters, such as hurricanes, demand for things like gasoline and food spikes.  People rush to the stores and stock up, often clearing off the shelves in short order.

The natural market reaction to this is for prices to go up, both as a natural rationing trigger (you’re unlikely to buy more than you need when prices go up) and as a way to increase capital so that businesses can restock those shelves and re-fill those gas tanks (something that’s more expensive for these businesses too in times of emergency).  When businesses are allowed to “price gouge” (or simply price based on a supply/demand scale) shelves stay full.

Which is the optimal outcome, no?  Better to have some food, and some gas, available at a higher price than to have none of either available at any price.

The solution to these problems is less government, not more.