Discussion in 'Economics' started by crgarcia, Oct 29, 2007.
High oil prices, a lowered dollar fueling inflation, a credit squeeze on corporations, lack of foreign investment, along with many consumers crunched from the housing crisis - see my other thread - could do it. I think it has to be more than one factor though: just higher oil prices won't do it alone. The US economy is like stopping an aircraft carrier - it takes a lot to break the momentum...
$90 oil is just a number
oil could easily double in the next year and it woudn't be a big problem
There is going to be a ton of media hype when oil passes 100 but it will have no impact on stocks.
This link does a great job that it's the fundamentals underneath an economy that matter:
In other words, it's not just a $5 increase in oil that will bring down the house unless it's a house of cards in the first place...
Your nuts if it doubled it would be a major problem. Youâre talking 7 bucks a gallon. I think it would crush the economy. They would torch the white house at that point. All your food would go up 25% at least. The wages of US poor and middle class are not growing. Around the world it would be alot worse.
In UK gas costs $5.64/Gallon and guess what they are just fine.
So Gas going to $6-7 bucks over the next 12-18 months would NOT be a problem....
The UK has benefited fromm oil being priced in a falling dollar. In 2000 truckers blockaded the refineries and within days the country nearly collapsed.
The UK is a small country. Cars and Trucks dont have to travel far.
England has rail,bus systems that take care of poor.We have wide open spaces,two/three cars per .We also go to starbucks alone in our trailer sized rigs.
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