Quote:
Originally Posted by vintagetoppsguy
Wow, Bob, you're one of the very few that actually gets it. It's funny how many people commenting have no clue how the economy really works.
Someone else in this thread eluded that cheap gas prices are great. They think it doesn't effect them 
Ummm, can you say 'trickle down effect'?
One of the indicators of a recession is low oil prices (just like the last recession).
Edited to show graph between low oil prices and last recession. |
You're cherry-picking data. Low oil prices
can result from an economic downturn, as happened in the second half of 2008, but they can also result from many other factors. Any fall in oil prices from a recession is almost always very short-lived, since bigger macro factors generally have a much bigger effect. Oil prices declined pretty steadily from the early 1980s to the late 1990s, during one of the greatest and longest economic booms in U.S. history, going from over $100 (inflation-adjusted) down to $15 by 1998. They then rose pretty steadily over the next decade, with just a brief move downward in the short 2000-2001 recession, until 2008. See this longer-term price chart:
http://www.macrotrends.net/1369/crud...-history-chart