Many of us, still remembers the scary Goldman Sachs Oil price predication back in March 2005, at that time oil price was $50-$55, some body even ridiculous about this predication. what a losers??. After 3 years now, Oil price spikes to $110 per barrel and no signs of price decrease for foreseeable future. US economy is now in recession, due to declining demand, oil price should come down, but it is not happening. The main reason would be, as George Bush said during previous state of union address, US people are addicted to oil and they have no choice also because of poor public transportation infrastructure. Now what is happening is people are driving to shopping mall but not buying anything because they want to save some money for gas.
With combination of credit market meltdown, oil price and decline home equity, things are looking very gloomy and positive signs are far away, may be summer of 2009 unless oil price come down and stimulus rebate checks going towards shopping not to pay off loans.
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