Wednesday, March 17, 2010

Bus diaries. Vol 2.

Buy a fuel efficient car. Our current economic situation was not started by the suspect lending practices of a few sub prime lenders. We are where we are at today because of a spike in transportation costs, mainly fuel, that occurred just under two years ago. While we knew of potential trouble before the summer of 2008 in the sun prime lending industry we weren't aware of the total collapse of our economy. As transportation prices rose, both individuals and business struggled to adapt. A fundamental piece of our economy involved the movement of goods and services. The rather sudden increase in fuel prices affected all aspects of out economy. Oil prices have since receded but only because the global recession has scared speculators out of the market. Has we start to see signs of recovery gas and oil prices will slowly rise as investors make money in stocks. However, sooner or later speculation will enter the oil market and oil prices will begin to rise. Gas prices seen in 2008 will be the good ol days.
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