The reason for this recession is simple- FUEL PRICES

[NJmaverick]

When you raise the price of fuel you siphon a significant amount of money from the economy. This is exactly what happened back in the 70s. Think about it, if people are spending an extra $10-$100 dollar extra a week, on fuel, it's money they don't have to spend and pump up the economy. Since this is money that is spent on an imported commodity, it's money that is completely leaving our economy.

With everyone having less money to spend, there is a significant dip in our economy. If fuel prices were to drop or the US would get serious about oil alternatives, the economy would rebound.

[NMDemDist2]

1. nevermind

:evilgrin:

[madinmaryland]

2. The US HAS to get serious about conservation and

utilization of alternate energy sources. PERIOD!!

[MadinMo]

11. This is one of the many things I don't understand

Why is there no enforced conservation? At least change the speed limits!

Oh yeah I know ---the powers that be WANT us to squander the gasoline, they don't want us to conserve.

Hopefully Gore's informational campaign will help John Q Public make up his/her own mind to conserve.

[NJmaverick]

13. I think that the CAFE is the place to start

Personally I am not a big fan of making it take longer to get from point A to B. On the other hand the monster SUVs people are using, are for the most part, completely unneeded.

[MADem]

36. Yeah, that worked so great under Carter...NOT.

And you punish the pigs along with the conservers. It's the sort of thing a one-term president might do.

That hybrid owner is doing his part--why should he have to slow down on an eight hour drive because some hog in a "never used off road or for farming purposes" SUV can't conserve?

Education, not mandates. And maybe a little public shaming. After all, no one smokes at the Kindergarten parents' day anymore, do they?

[DemocratInSoCal]

3. WRONG!! You Can't Say It's One Cause

There were So Many factors which contributed to the situation we're in. Oil prices are certainly one of them. But to boil it down to just that, is completely mistaken.

Gas prices on their own, would not have caused the mess we potentially face. The only question is now, how long can they keep ALL the Heavy balls in the air, before they come crashing down around us. If oil goes up, it may help trigger the first ball, but make no mistake, there are lots & lots & lots of problems with this economy, and I'll still be amazed if they can keep things from collapsing.

Of course, all they want to do is run out the clock on 2008. Fuckers!

[NJmaverick]

5. Fuel prices is the underlying fundemental cause

there are other factors (many of which were used to try and offset the fuel price rising's negative economic impact) but they are (for the most part) seconday to the inflation of energy prices.

[Johonny]

19. I disagree

The drop in the value of the American dollar is the most likely primary cause in commodities such as fuel going up. But that's tied to the crazy interest rates of the Bush Fed, which is tied to Bushes insane taxing system, which is tied to Bushes insane spending policies... nah it's a very interconnected economic disaster not just one simple thing.

[NJmaverick]

20. The drop in value is the result of the huge inport VS export

debt.

[Parche]

18. oil

Oil is the main reason for this, higher prices are causing food prices to rise, everything is connected to oil......

So there

:hi:

[A wise Man]

28. Thank you, nuff said

all this bantering back and forward makes no sense. Bush and his oil cronies started this mess, why can't people acknowledge that fact and stop making excuses.

[natrat]

29. exactly-currency issues,world demand,debt,lont term economic cycles,war etc etc

[MercutioATC]

4. Ummm...it's a little more complicated than that.

Outsourcing jobs overseas, the Fed "injecting liquidity" into the economy resulting in devaluation of the Dollar, war spending, the collapse of the mortgage and consumer credit bubbles...

Fuel prices are more of a symptom than a cause.

[NJmaverick]

6. The war has had a negative impact

many of the other factors you mention, were used to offset the negative impact of rising fuel prices.

[MercutioATC]

10. One of the reasons for higher oil prices is the devaluation of the Dollar.

...which was caused, to a large degree, by the Fed injecting liquidity and lowering rates...which was prompted by a sagging economy caused by unemployment and underemployment...which was caused by outsourcing jobs...

It's all connected.

It's not as simple as I've illustrated, but this recession is due to a LOT more than the price of oil.

[Andy823]

23. It's the George Bush

"Trickle up" policy. All the money "trickles" up to the top, and those at the bottom have to "suck it up" and accept that our leaders know best!:grr:

I agree it's a lot of things combined that has gotten us into this mess, but it all boils down to "greed" over logic. Outsourcing for larger profits, CEO's making outlandish salaries and bonus's every year, oil companies making recored profits every year since Bush took office causing hire prices for things we buy at the stores. It's all the game plan of a sick idiot that wants to turn this country into a "North American Union", an instigate the "new system" that his dad talked so much about when he was president. The system where the rich get richer, and the poor, well who cares about them!

[NJmaverick]

25. Go figure, put an oil guy in charge and prices triple

who could have seen that coming?

[NightWatcher]

7. it's the dollar and the fact that it takes more of them to buy something than a euro

the whole world and their economies know that we aren't worth shit right now

[sinkingfeeling]

8. No. The basic problem is that we even have a 'consumer driven' one and that people and the

government are drowning in debt.

[Speck Tater]

9. According to Financial Times...

One contributing factor in high oil prices is a shortage of electric generating capacity in the Middle East

http://www.ft.com/cms/s/0/4ba38d8c-0059-11dd-825a-000077b07658.html?nclick_check=1

[ConcernedCanuk]

12. Umm - I disagree - things like the Wars in the ME, the sub-prime fiasco and outsourcing come to mind

.
.
.

And having sociopaths like Cheney and Bush run the USA for the last 7 years didn't help . .

Just saying . .

[NJmaverick]

14. Many of those factors hurt

but they have been around for some time now. Fuel prices, on the other hand have spiked before, but now the new high prices seem to be here to stay.

[leftofthedial]

15. it's that simple--in a way

but the reasons and machinations behind high gas prices are anything but simple.

[NJmaverick]

16. I agree

I am sure there is plenty of manipulation behind these high prices.

[Sherman A1]

17. I believe this is a bit too simplistic of an answer

Just like everything else there is no one answer (unless you consider that answer to be W. and his series of failures). You have a war, tax cuts creating a situation in which the dollar's value goes down. You have the gamesmanship on Wall Street and the Ponzi scheme of the mortgage market (perhaps created by too large a money supply). You have a middle class (what's left of it anyway) with stagnate wages for most of the last 30 years, while the rich get considerably richer. You have a failure by both Republican and Democrats to move towards more energy efficiency. Now the chickens are coming home to roost.

[Winterblues]

21. But there is a reason for higher fuel prices as well

Devalued dollar has the most to do with our economic woes. And that is caused from bad policy especially in the foreign arena. America has become a piriah around the world and our money is quickly becoming worth less. When our dollar buys less things cost more...

[kentuck]

22. And the reason for the fuel prices is :

Iraq.

[Locrian]

24. the belief in continuous growth

The whole thing boils down to the believe in continuous growth. But the problem is that NOTHING can grow forever in life. The whole economy is based on not just a decent rate of return, or working hard - but continuous GROWTH. Which if you compound that it means EXPONENTIAL growth.

So, the stock market, housing prices, oil whatever are expected to rise forever. Where does the "money" or "value" come from. The harsh reality is that there is NOT infinite resources available to make that happen. Seems like the US is in the worst denial since it has (for the last 200 years) been the land of infinite resources - and look at how we have trashed those resources.

This generation will finally come to grips with the limit of the planets capacity to provide these resources. And it aint gonna be pretty.

[The2ndWheel]

26. It's the human corporation waking up

It's not just about Americans anymore. It's about all of standardized humanity playing the same game. It's about not all of the 6.5+ billion people on this planet being hooked into the global economic system, and actually trying to hook all 6.5+ billion people into the global economic system.

Conservation, on any meaningful scale, is not possible.

Efficiency gains end up giving us the ability to use more energy. Energy efficiency will not lead to conservation until all 6.5+ billion people(and that number will grow before it doesn't) have all the energy they need. Good luck.

There is a price to be paid for increased economic activity, and that is a larger impact on the habitat. No matter how hard we try, we cannot escape that. We never have, and we never will. The only way to get out of this particular mess is to make energy more expensive, and more difficult to extract from the environment. Since there is a huge price to pay if we were going to do that, and we would find ourselves in a different mess, we can't do that voluntarily.

Just remember, the cheaper the energy, the less you are needed, economically speaking.

[natrat]

30. exactly-game over

[nebula]

27. Higher fuel prices creates inflationary effect

as commercial transport costs skyrocket, retail prices also skyrocket (ie: high food prices) as retailers pass the costs onto consumers, further depressing the economy. people are then forced to spend more on the basics and have less to spend on 'luxury' goods.

[NJmaverick]

31. That's how we got the stagflation of the 70s

[nebula]

34. And high unemployment

when consumers don't spend we lose jobs.

fuck Bush and the do-nothing Dems.

[dysfunctional press]

32. the investment class NEEDS their 10% gains EVERY year.

there's NO CHOICE but to pass the costs along to the consumer.

[Fireweed247]

33. The oil companies are making record profits

There might be something to that.

[taught_me_patience]

35. So wrong

Although gas is at an inflation adjusted high, consumption on gas represents 4% of the average income. It peaked in 1980 at 6% of income. The reason for the recession is that HELOC and Refi money from the housing boom has dried up. Refis and HELOCs pumped more than 1 trillion into the economy over the last several years.

[Festivito]

37. Irresponsible borrowing and irresponible spending is my view.

Our debt is too large and we've further borrowed credit from other countries as well. We've mortgaged our good name, until it has become reviled.

We have a large mess to clean, and until we make an effort, we will recess.

[DCKit]

38. 46% of our oil is produced domestically.

Therefore, 46% of the insane profits from $100+/barrel oil are retained by domestic oil companies and the main contributor to their profits - there are no middlemen when you are pumping, shipping, refining and selling your own product.