Is there a small chance that the , interest rates, and the economy could actually suffer because of the high price of gas?

Explain?

 
  • Steve O 8:49 am on November 15, 2009

    The stock market is the most affected. I check the business news every day, and when oil prices rise significantly, the stock market usually goes down. And it makes sense- the more money consumers are paying for gas, the less money they have to purchase other things that the companies that make up the stock market are selling. It also has small negative effect on the economy, because consumers are cutting back their spending. Not sure about interest rates, though.

  • midcenturydesigner 8:49 am on November 15, 2009

    When gas goes up, everything goes up….You have to pay to transport goods. Also, many products are petroleum based. Plastics, paints, even certain computer parts are made from petroleum.

  • King Steven 8:49 am on November 15, 2009

    The reason interest rates have not gone up yet and have been cut instead is due to the depressed housing market. Typically the fed with increase interest rates to combat inflation, however in our situation they have had to choose between two economic difficulties.

  • Mirriam M 8:49 am on November 15, 2009

    The stock market exists to make a profit. There’s a profit to be made, but the problem is that the general public is on the ropes and can’t really afford all the luxuries they used to. They will start cutting back on things they don’t need.

    This will cause prices to drop in some commodities (electronics, cars, toys), and create hording and speculation in others (food, medicines and necessities).

    The problem is now that we are feeling the consequences of about three decades of bad planning.

    Expect this market to remain weak a long long time. And you best believe the public will feel greater and greater pain, because jobs can’t come back in this kind of environment.

    They can only get more scarce and lower paying.

    Greed comes up against need. That equals hurt.

  • Mogollon Dude 8:49 am on November 15, 2009

    One the whole thing is because of the loosing value of the US dollar . Two the money that would be investing in wall street is going to the commodities market because wall street is broke with worthless debt .

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