Posted on 03/21/2011 4:29:25 AM PDT by Red in Blue PA
The U.S. economy faces numerous obstacles that threaten to derail the recovery. But economists are most fearful of one major headwind: oil prices.
More than two-thirds of the 23 economists surveyed by CNNMoney identified high oil prices as the most serious risk facing the economy.
As uprisings spread across the Middle East and North Africa, prices have soared about 15% in the past two months, pushing gas prices higher. And as the situation in Libya escalates, economists are growing more jittery about oil prices, even in the face of other threats to the economy, like the crisis in Japan, cuts in government spending and continued weakness in the housing sector.
"Oil and gasoline remain a very big worry for me which have been compounded by the events going on in Japan," said Bernard Baumohl, head of the Economic Outlook Group in Princeton, N.J. "But we don't have any let-up in the events going on in the Middle East and North Africa."
(Excerpt) Read more at finance.yahoo.com ...
Last weeks line was that oil would drop because of Japan, now we are back to the old line.
Wonder what it will be next week?
You just can’t get anything past those economists...
That is brilliant analysis.
Whatever caused the drop at the pump early last week, it went back up to the recent highs Saturday morning here in Northern Indiana. After the resolution, but, before the attacks.
” Where can I get a job stating the obvious? “
First, you need to develop a talent for ‘treating the symptom’ (high gas prices) and ignoring the disease that causes it (out-of-control Government)....
I remember when gas was over $5 a gallon. A guy in front of me puts $3.50 through the window. It was all he had and he had to get to work. I bought him $10 more in gas and so did the guy behind me in line that saw what was going on.
The guy was going broke driving to work.
*
A story was in the news this morning of how there is now panic buying of Priuses, with some dealerships now charging thousands more than they cost.
These economists are geniuses. Was this “unexpected”? Is someone paying these fools?
The amazing thing to me is that they get multi-million dollar bonuses for this type of “analysis”.
I hope that you realize that demand destruction can be caused by recessions. The recession we are currently in is already resrticting the amount of gasoline, and other oil distillates, that we consume. I agree that high gas prices will destroy demand in the USA...but it will be because we will drift back into recession. There are ~12 million unemployed people that simply can't afford to buy a more energy efficient automobile until they get a job and pay off some of their debts.
You know what would be funny? If some Republicans came out and said that Obama’s war on Libya was all about oil and called the Democrats hypocrites on it. Just a thought.
Joe Scarbouro was throwing all the Democrats anti-war arguments back at them this morning, it was fun to watch. Like "Are we now going to bomb every country with a tyrant? If we dont remove Gaddafi now after attacking him he will use his oil money to get revenge." Good point Joe, especially when we are broke.
“I hope that you realize that demand destruction can be caused by recessions. The recession we are currently in is already resrticting the amount of gasoline, and other oil distillates, that we consume. I agree that high gas prices will destroy demand in the USA...but it will be because we will drift back into recession. There are ~12 million unemployed people that simply can’t afford to buy a more energy efficient automobile until they get a job and pay off some of their debts. “
AMEN!
That is why forget polls on Obama and Democrats the public want cheap enegry, I am so tired of Progressives thinks all these new rights, however 1 right the american people think they have is CHEAP OIL.
Not really. If the price were based on reality, not some political agenda Americans would accept it and adjust.
The price of energy is Politically driven. BIG DIFFERENCE.
Spending cuts by local, state and the federal governments:
6 of 23 say it the biggest headwind for the recovery
8 of 23 say it is the second greatest threat.
I would have been encouraged if 23 of 23 economists had said the rise of democratic communism in the US is the biggest threat to our economy and nation — PERIOD. Instead, these so-called “economists” want to continue policies that will bankrupt America, cause us to lose our global leadership position, and ultimately impoverish all of us. Only brain-dead idiots would be in favor of continuing on the failed path of borrowing from the Chinese, our kids and our grand-kids for today’s consumption.
It’s not about stating the obvious, it’s about “when” you state it.
In order to be right, you almost have to become a member of the procrastinators club.
So, far, we’ve been 100% correct on our New Years eve predictions for 2010.
Would that be an, “UNEXPECTED” spike in prices of goods & services?
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