I have thought this from day one!! The $5 gasoline and record high natural gas prices and oil prices I think is what really drove the world wide economy over the edge. Money had to spent on energy and not other things!
Anonymous
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Agreed that it severely damaged the economy, if not drove it over the edge.
What I find the most interesting is that gas prices didn't really rise until Bush signed the last stimulus bill and the treasury sent the rebate checks out.
Once those checks hit mailboxes, gas went up $1/gallon within 2 weeks and didn't stop growing in price until the stimulus money was spent.
After the bottom fell out on the gas prices in mid-August, the investment banks took a major hit because they had been speculating on the price staying high and ended up losing their shorts, thus had to be bailed out by mid-September by Paulson.
thought processes
When Obama was elected, companies realized there would be more governmental control and loss of some tax benefits. This caused an immediate downturn in investment and stock prices. Dropping the market through the floor.
Combine with that banks overextending themselves with failing foreign investments and failed ARM mortgages, and you have the onset of the current depression. What … When Obama promised more governmental control and cuts in tax breaks for big business you thought it would not stifle the economy, as republicans had promised?
We are reaping the whirlwind of America’s bad choices. Electing Obama to get back at GWB. Gas price are an effect ….NOT a cause.
golkin
gas costs are going to be extreme no depend what. do you opt to have some good suggestions to grease? perhaps if we have been charging a pair dollars a gallon tax on gas for the previous two decades and spending that on analyze into suggestions, we would be a million) keeping extra oil and gas, and 2) extra alongside on renewable power supplies. do no longer hassle approximately ANWR. That oil can no longer vanish. it is a tiny factor of the North Slope. we don't need it now. consistent with threat in 40 years we are going to be desperate sufficient to could suck all the oil out of it, yet consistent with threat via then we can't choose it.
Anonymous
No.
You'll have to do a lot more studying if you want to come close to the truth.
But coincidentally, last year because of the high cost of gasoline I took a crash course in economics. With the help of my local library.
It's very interesting what I found. Some of it is even unbelievable.
Please study up on the subject, it's well worth the time.
Anonymous
Then why didn't everything go back to normal when energy prices came down?
The principal cause for the crisis was loan defaults, coupled with the way mortgages were being repackaged by the "stealth" banking industry.