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: http://www.forbes.com/home/markets/...-markets-marketsp07-cx_mm_1025mauboussin.html 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. http://money.cnn.com/pf/features/lists/global_gasprices/price.html
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.
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.