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Oil Price Hikes Have Preceded 5 of the Last 6 Recessions!
An analysis of the effect that rising crude oil prices is having, and will continue to have, on America’s standard of living is very revealing. For every $1 increase in a barrel of crude oil the cost of what you pay at the pump for a gallon of gasoline goes up $0.03. That may not seem like much but the recent spike in the price of oil, were it to remain at its current level of $105 per barrel, would cost the median household somewhere in the neighborhood of $700 in 2011 – yes, $700! Words: 345
Jenn Johnson, in comments at www.ragingdebate.com which Lorimer Wilson, editor of www.munKNEE.com, has reformatted and edited for the sake of clarity and brevity to ensure a fast and easy read, had this to say on the subject:
Watch for the speculative bubble in [crude] oil to re-inflate[the economy] thanks to the geopolitical turmoil in the Middle East… Local gas stations we have seen prices rise 30 cents a gallon in the last [week]. This hurts the consumer and hurts the local economy. If high prices continue, watch for CMBS (commercial real estate) to come under pressure again. Hotels will have a difficult time filling rooms. Retail will slow. As debt comes due, refinancing will once again be tough. It may be a rough ride once again this summer. Whereas the consumer was largely complacent in 2007, the stress of the last three years has put some fire in their bellies. Consumers may not be as complacent this time around. They may be demanding action.
The above chart is courtesy of Zero Hedge and John Lohman.
*http://ragingdebate.com/economy/oil-prices-and-the-us-consumer
Editor’s Note:
- The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
- Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above.
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