Tuesday, February 15, 2011

Hard Times Investing Update 2/15/2011: $4 gasoline may just kill this painfully slow recovery

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Many experts are crowing that we are out of the woods and we will not have a double-dip recession. Let us hope they are right. I hate it when experts sound confident.

IMHO, should gasoline rise to and remain at or above $4 per gallon for more than a just few consecutive months in 2011 or 2012, the economy could again become coyote ugly. Some folks have not paid off the credit card bills they ran up when gasoline last cost $4 and over. If gasoline stays below $3.50, we may be okay.

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4 comments:

Ruth said...

I gotta say that pretty much sums it up, and the last time gas went that high I was driving a '91 Honda Civic that got over 35mpg around town!

James A. Zachary Jr. said...

I take it that the Civic is no longer around... too bad... I have heard nothing but good things about them.

The 1997 Geo Metro bit the dust last year... it was not as good as your Civic but 32mpg was very welcome. We get about 25mpg around town with the Cobalt and 15mpg with the van (which will see very limited use).

Glenn B said...

There are quite a few gas stations in NYC and on Long island charging close to $4 for regular. It is well over $3.50 at many of them. Has been that way for awhile now. Really sucks too. Then we have heating oild, $490 to fill my tank last month and it was only about 3/4 empty.

Arthur B. Burnett said...

Greetings from Texas,
Gas can still be found for under three dollars a gallon here in the deep boonies. I have to tell you folks, the prices at the pumps are not reflected in my pitiful royality payments.

A lot of folks talk about 'windfall profit taxes.' They don't cost the oil companies a penny, their lawyers see to that. They pass that tax on to the property and lease holders. In my case the result goes from being able to make a house payment, to perhaps a water payment.