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| Re: Egypt Revolts! (727088) | |||
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Re: Egypt Revolts! |
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Posted by SMAZ on Sat Jan 29 18:59:58 2011, in response to Re: Egypt Revolts!, posted by GP38/R42 Chris on Sat Jan 29 11:02:28 2011. During the time when hundreds of thousands of jobs were being lost each month and companies were operating at half strenght, it was not only the laid-off and the companies that were obviously cutting back but also those still working because many didn't know if they would be joining their collegues on the unemployment line and were thus socking away their money instead of spending it.They cut back not only on gas and energy but on everything. Now that the worst is over, those people are spending again. Ironically, even those that have been foreclosed upon are spending again because instead of cutting back in order to save their house, they are now renting something they can afford and have extra money. This has a ripple effect on industry (other than housing) and makes the economy improve and the price of oil go up. Add that many large world economies really only took a breather or had just a mild recession rather than flirt with Depression during 2008-early '09 and you can see that oil is priced where it should be. Add roaring stock markets to that. That more than offsets any slight cutback by some due to oil rising prices. Prices haven't risen in places with strong currencies like Japan, etc. They've risen in US$ due in part to QE2 in order to spur a little bit of inflation and thus avoid a catastrophic deflationary spiral. |
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