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Article about 100 dollar oil

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Article about 100 dollar oil

Unread postby Eli » Wed 09 Aug 2006, 16:41:42

inflation.100 dollar oil

Here is another article about the chances we will see 100 dollar oil.
It gives investment advice which is all well and good. But here is a little gem found at the bottom of the article.

$this->bbcode_second_pass_quote('', 'B')ut there's a chance that gasoline prices of $4 to $5 could cause a significant consumer slowdown that might lead to a recession, says Ed Yardeni, the chief investment strategist at Oak Associates. "The psychological impact of $4 or $5 at the gas pump would probably push consumers over the edge. It would be pretty ugly across the board," he says.

The good news is the Federal Reserve would lower interest rates, Yardeni believes, because a superspike in oil would increase the chance of a recession more than it would spark higher inflation.


This Yardeni guy must be a complete idiot, 4 dollar gas would only inflate the cost of products that use oil in their processing, shipping or manufacture.

That is the sick thing about oil when it goes up everything goes up, until demand destruction sets in. What is going to surprise a lot of people is the fact that we are going to be in a recession and have
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Eli
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