Re: Oil hits $118/barrel

On Apr 23, 8:55 pm, John Lansford <jlnsf...@xxxxxxxxxxxxx> wrote:
The steps you're describing for consumers impacts the economy.  That
trip to the beach hits the hotels, restaurants and tourist shops that
rely on their business.  Buying fewer goods due to higher prices hits
the stores.  Eating in instead of eating out hits restaurants, etc,
etc.  Construction now costs much more due to higher fuel, asphalt,
and other petroleum costs.  Farmers spend more for fertilizer and
fuel, etc.

IMHO, we are definitely in for a solid recession. High fuel prices is
a big contributor for the reasons you stated, but there are other
factors as well. Basically, we've had a boom economy that has burst.
Many people were living beyond their means (thanks, IMHO, to
unscrupulous lenders in mortgages and credit cards) and the bills have
come due.

Other factors, again IMHO, are the US foreign trade deficit, health
care costs, and ongoing decline of domestic manufacturing.

A big factor is food prices, but that should be the subject of a new
thread on ethanol, such as why the heck corn is so expensive? Is
ethanol sucking up every ear of corn grown in this country? Did we
suddenly increase ethanol use?
.