Housing market caused recession my azz
The news and economists have been saying all along that the housing bubble put us into the recession in 2008. I knew all along that Gas prices did it. Nobody would agree with me.
Its simple math. You take the everage person living week to week like they do, new cars, nice house, expensive spouses taste she has to have.... ok now raise gas 2 dollars more a gallon and fill that Suburban with 50 gallons. Now raise his heating oil ... propane.. nat gas ... diesel ... foods gone up like crazy ... those people are going to be broke very soon ... and they were.
Ok now they lose their job like thousands did now what.
Sure, sure, the banks were doing dirty tricks to give out loans to people who couldnt afford them, but they were doing just fine until GAS suddenly sky rocketed.
Well yesterday Glenn Beck finally admitted it was the price of oil sky rocketing that caused the riple effect in the first place in 08.
Duh, I knew that and I didnt pass 10th grade.
Now them bastids on wall street are messing around again with oil again?
Why would they do this at a time when the whole United states is already in deep trouble??? I dont understand.
Oh wait ... its because we MIGHT have a supply problem with all the fighting going on in the middle east.
Thats BS because we get most our oil from Canada and Mexico.
I really dont get what they are trying to do to our country.
Someone explain please .....
Gas prices certainly hurt the economy but the housing and financial debacle that it incited not only caused the recession but almost destroyed our whole way of life.
When the economy is strong as it was at that time,driven by housing,the price of oil is higher they go hand in hand.We are now in recovery,and with problems in the middle east we have higher oil.
We are in a recovery ??
How big of a raise are you getting this year ?
We havent hit bottom yet, but if the price of fuels go up like they predict you might see it soon , and you also might wanna buy extra locks for anything worth stealing because folks are going to lose their minds and do what it takes to survive.
There were several factors that led to recession. But the high gas prices after Katrina was the catalyst that opened the door.
Think about it...$4 a gallon gasoline ate up any and all disposable income for much of the lower and middle class. The money they used to spend at the retail stores or restaurants was now going into the gas tank. Retail sales plummeted, employers laid off personnel and cut back on buying, reduced demand for goods hurt manufacturing, more jobs lost because of reduced manufacturing, people couldn't pay their bills and started defaulting on credit cards and mortgages. Then came the banking crises.
And here we are...
the economic downturn is caused by over-paid CEOs, large companies who have an obsession with making a multi-billion dollar increase in profits every year,
...and companies taking their profits from the wages of the people who bring in the business.
the "economy" is not going to turn around because no one is talking about this problem yet.
Lets not leave out the Ceo's scraping money off the top and stashing in the freezer before the business goes bankrupt.
Money can make a man a thief in no time flat.
I agree with your OP, except I don't think this is a USA problem as far as oil prices go. It is an international commodity, so it is investors that do the stuff that swings oil prices wherever they reside. A good study of 'futures markets' will help to understand this. I would personally rather have a hole drilled in my head slowly, but is up to you.
Originally Posted by Snapperhead
Can't blame businesses either, nobody wants a bad economy. Some will be screaming about oil co. profits going up, just wait. Here is why they profit more now: Not so long ago they were pumping a barrel for 40$ and selling it for 60$. All of a sudden now they pump it for 40$ and sell it for 100$. Big profits. But that does not mean they control the market, unless you can prove they are manipulating the supply like OPEC does. Does not really matter where the oil comes from or where it is destined, one global price.
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