Thursday, September 6, 2007
I'm going to point out again tonight the main cause of recessions is spiking energy prices not credit crunches or real estate woes. Notice the spike in 80. It was followed by two recessions. The 90 recession was accompanied by a vicious spike in oil prices during the Iraq war. The 2001 recession soon followed a year long spike in oil price. I believe if we see oil near or above $100 by the end of the year then we can probably look forward to another recession in the not to distant future.