Thursday, September 01, 2005

Is Recession Inevitable

Some have compared the impact of rising gas prices on disposable income. Some say that gas prices will not hit the $4 mark on average. The theory behind that is gas consumption will be reduced at those levels. If it plays out as so, then that's all you need to set the recessionary path on its way. Consumers will stop traveling and cut back on spending. No spending, our economy slows, GDP falls, and you know how that story goes.

2 Comments:

At 6:02 PM, Anonymous Aaron Koral said...

Hi Sam - I came across your web site and was wondering what your opinion is of the chances that the yield curve will invert by year's end? I noticed that the short end of the yield curve is almost inverted (I'm talking the two and three yr. US T-Notes). I'm curious to know you're take on this...Happy Labor Day!

 
At 6:17 PM, Anonymous QUALITY STOCKS UNDER 5 DOLLARS said...

Recessions well happen.

 

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