Prepare for more pain: Oil tops $142/barrel
Posted By RichC on June 27, 2008
As oil rises the stock markets fall creating double the pain for those who are invested in the stock market as investors, college planning or retiring. Those hoping real estate is safer, think again as housing continues to get pinched in most U.S. cities. All in all the economy is suffering and with it, almost every American. Top on the “who’s to blame” list ‘was’ the excessive credit being loaned (and borrowed) a few years ago, but now it has to be the price of energy. With oil now trading above $142/barrel, stock market suffering additional declines (link) and regular unleaded gasoline prices at the pump currently averaging $4.06/gallon nationwide — and heading higher with $142/barrel oil, U.S. citizens are feeling the pinch.
I’m not an economist, but as more and more discretionary dollars are needed for energy, fewer and fewer are left to keep America at full employment. Most of us can eliminate the cup of Starbucks, reduce our spending for entertainment and cut travel to a minimum (previous post), but eventually we’ll no longer be just be eliminated the ‘luxuries’ and just cutting fat … we’ll be cutting in bone.
I had planned on pre-purchasing travel tickets for October, but I’m noticing slowing in my current business (even more than a normal summer slowdown). I’ve had more clients than usual asking what we can do to reduce their current budget amounts for regular projects. In the printing and publishing world that means lessor grade papers, leaner graphic artist hours and reduced mailings. It isn’t something I enjoy seeing since it will seriously impact my company’s and my personal income. One can only hope that the slowdown is minimal and short lived. As usual, we look to government for a fix — as if they hold a super magic bullet???
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