Oil prices raise worries of recession

[VaLabor]

WASHINGTON (AP) — High oil prices, which have been a factor in virtually all U.S. recessions over the past three decades, are surging again this year. And the higher crude oil prices climb, the more risk energy costs pose to what, until recently, many expected to be a banner year for the U.S. economy.
.
Some economists are even beginning to worry about an outright recession if oil prices, already at record levels, go much higher. And concerns are rising about the threat of “stagflation,” a dreaded economic malady of stagnant growth coupled with rising prices that had the United States in its grip during the oil shocks of the 1970s.
.
It isn’t just higher energy prices that are inflicting the damage, but the ripple effect these higher costs have on such critical areas as consumer spending.
.
“Oil has become a barometer of confidence in the global economy,” said Sung Won Sohn, chief economist at Wells Fargo in Minneapolis. “Higher oil prices mean uncertainty is rising and economic growth is going to be weaker.”

MORE: http://www.qctimes.com/internal.php?story_id=1033622&t=Business&c=31,1033622

[WI_DEM]

1. only problem is we wouldn't know for sure until after the election

[PROGRESSIVE1]

2. What do you mean?

[Born Free]

3. oil companies helping bush

Although prices at the pump followed the daily rise of price of the barrow of crude oil, lately prices at the pump have not been rising. However, this is only temporary, expect some price gouging after the election, perhaps even another faux oil shortage - it will remain that way until the democrats takes office and start Congressional investigations on the price gouging.

[Kahuna]

4. No Duh. We're headed for a "W" shaped recession...

Or a "w" recession if you will.

[Uben]

5. It'll go up!

The price of gasoline will be rising before November. Expect them to rise significantly by the first of October, given the record high prices we are seeing for oil this month. It could actually have a monumental effect on the elections if prices don't start waning right away, and that aint gonna happen. The big question is, are we going to lapse into a full recession this fall? Looking like it, folks!

[dArKeR]

6. US economy may be in for another oil shock - Recession - AFP

High oil prices, which have been a factor in virtually all US recessions over the past three decades, are surging again this year. And the higher crude-oil prices climb, the more risk energy costs pose to what, until recently, many expected to be a banner year for the US economy.

Some economists are even beginning to worry about an outright recession if oil prices, already at record levels, go much higher. And concerns are rising about the threat of "stagflation," a dreaded economic malady of stagnant growth coupled with rising prices that had the US in its grip during the oil shocks of the 1970s.

It isn't just higher energy prices that are inflicting the damage, but the ripple effect these higher costs have on such critical areas as consumer spending.

http://www.taipeitimes.com/News/worldbiz/archives/2004/08/24/2003200054

[Tight_rope]

7. YES....The US is fucked...The oil companies will screw the people!

[area51]

8. Some economists.

"Some economists are even beginning to worry about an outright recession if oil prices, already at record levels, go much higher."

Actually, "some economists" should get their heads out of their butts & admit we're already in a recession, if not the 2nd Great Depression. Just ask the unemployed & underemployed.