WP: "Oil Shock" Worries Some Economists ("economy near tipping point")

[DeepModem Mom]

'Oil Shock' Has Some Economists Worried

By Nell Henderson and Justin Blum
Washington Post Staff Writers
Friday, August 20, 2004; Page E01


Crude oil prices soared yesterday to nearly $49 a barrel, heightening concerns that sustained high energy costs could drag the slowing U.S. and world economies into a more serious downturn.

With growth slowing in China, Europe and Japan, some economists worry that rapidly escalating oil prices will trigger a self-reinforcing spiral of falling demand in the U.S. economy and among its trading partners.

"This is an oil shock, absolutely," Roach said, noting that yesterday's closing price was 68 percent higher than the roughly $29 per barrel average that had prevailed since early 2000. "The oil price is high enough to make a real difference to a vulnerable U.S and global economy."

Roach and other economists also agree that oil prices could reverse and fall suddenly if the market psychology changes, which would give a boost to the U.S. economy, and in turn the rest of the world....


http://www.washingtonpost.com/wp-dyn/articles/A17070-2004Aug19.html

[bemildred]

1. Duh ... You think? nt

[hatrack]

2. Hey! He's an economist!

He gets paid lots and lots of money for his deep insights - insights that the rest of us could NEVER arrive at!

[Warpy]

6. Shoot, this is progress

The hideous inflation from the 70s oil shocks got blamed on working folks who got greedy and earned too much money, the great right wing paradigm of too many dollars chasing too few goods being the root of inflation. I mean, how dare we expect living wages???

At least this guy is putting the blame where it belongs. After all, most working people in this country are below what the poverty line would be if it were computed honestly. They can't get away with blaming the greed of the US worker any more.

[gasperc]

3. no, get out, no really get the fuck out of here

like we're a bunch of dumb fucking assholes.
We bitched a storm about the Iraq war and then started bitching immediately when prices started their spike in MARCH.

And now this fucker says oil shock puts economy at tipping point, someone needs to be taken to the wood shed!!!!!!!

[LeftHander]

4. Economy will be stabilized by americans buying...

New SUV and wardrobes from Abercrombe.

12 MPG and a $65 t-shirt...drive.


Get out there and shop!

[sam sarrha]

5. *ush canceled a Solar Pilot Project his second day in office,could produce

over 70% of the daytime energy for the country.. agricultural hemp oil and soy oil, bio diesel, could totally free us from the Arab oil.. even things like AMSOIL, 250,000 mile oil change would free us from the cartels

[sam sarrha]

7. "Oil Shock" is just another corporate Buzz word for BIG RIPOFF ...

you will be hearing that every TEN MINUTES from now on in the news..

[truthspeaker]

8. Shoulda thought of that 20 years ago

WHEN WE KNEW THIS WAS GOING TO HAPPEN.

This is what happens when businesses and governments refuse to plan for the future.

[Geo55]

14. "plan for the future"

The truth is they have no plan...except to take and control the remaining world endowment of OIL.
The never ending war that Chickenhawk Cheney alluded to long ago was a veiled reference to this.
This is the 1st shock of more to come....stay tuned.

[ProfessorGAC]

9. Worries Some Economists! LOL!

Some of us in this field have been worried the whole time. That's because despite the press and despite the ravings of bought and paid for economists, there never has been any sustainble growth and the causative influences of what growth there is hasn't been publicly analyzed. (At least not properly.)

The new issue with oil is just one more reason that the 30% of economists who denied the existence of the "recovery" have been reinforced in their belief.
The Professor

[yardwork]

11. Thank you Professor. Please keep the heat on

BushCo and their web of followers must think that the rest of us are idiots.

[Skittles]

13. I just love the Professor

he always pops in to eloquently clarify stuff I am wondering about. :thumbsup:

[struggle4progress]

10. kick

:kick:

[Green Lantern]

12. Would have been nice seeing a sidebar on the profits

Of Exxon-Mobil-like at all time highs as announced a couple of weeks ago.,

We need to boycott these sob's. Simple to do. Pick a company to boycott and a time frame to boycott them in. For example-my personal favorite corporation next to Halliburton, Exxon-Mobil those defenders of the pristine Prince William Sound -BTW what ever did happen to he Valdez?

Boycott Exxon Mobil from Labor Day to Thanksgiving-all products, all outlets including their franchise stores. See if the damn prices don't come down.
Screw them-they've screwed us long enough. If this is insufficient, exten it to New Year's. Or pick Shell or Gulf. Screw them all.

No more Bushwa.

[mahina]

15. Did the author even read the book?

Because Gladwell's 'The Tipping Point' is about how ideas are communicated in a model like a virus. That once critical mass is reached in communicating an idea, it spreads through the population, leading to change. Take a look at the Phillipine's ejection of Marcos, Chileans courageously voting out our man Pinochet, & lots more hopeful stories.

What is for sure is that the idea that Bush must go has definitely reached the tipping point.

What they don't mention is what a tremendous opportunity this energy mess also represents. Here in Hawaii alone we send 2 BILLION dollars a year out just for the oil we burn to generate our electricity, not even counting fuel for planes and cars, at a total 1% efficiency. Stupid stupid stupid!!
Ripe for the tipping point!

This just in: fear sells, but hope is on the way!!