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Fine. But nothing crashed until after the summer gas price spike.
The markets were over inflated. https://www.youtube.com/watch?v=3zUUtf7gOe8
Pop does the bubble. No bubble no pop. Without the gas prices going up you don't get the subsequent oil boom. The depth of the crash cleared out more loans faster than with out it. With out that you don't get the quick recovery we've had. But there is a lot more bad debts to clear. Or inflate away.
Just take a look at what the FED has done over the time from then until now. No oil boom no recovery.
The markets were over inflated. https://www.youtube.com/watch?v=3zUUtf7gOe8
Pop does the bubble. No bubble no pop. Without the gas prices going up you don't get the subsequent oil boom. The depth of the crash cleared out more loans faster than with out it. With out that you don't get the quick recovery we've had. But there is a lot more bad debts to clear. Or inflate away.
Just take a look at what the FED has done over the time from then until now. No oil boom no recovery.
I'm starting to see some of your points.
But IMO the gas price spike did not lead directly to an oil boom. That I believe to be both fortuitous and fortunate. Fortuitous in that newer extraction technologies finally came on board. Fueled by low interest rates. And fortunate in that without the oil boomlet, our overall economy would have lagged even more with its recovery.
But watch out for the double dip it mint not be as nice the second time around.
IMO any double dip would be oil related. And although certainly serious in 5 key oil states, not to the general and pervasive extent that the housing crash caused all over America. I anticipate buying back into oil related equities short/medium term.
But IMO the gas price spike did not lead directly to an oil boom.
The steps were,
Oil price hike.
The FED printed money QE ad infinitum.
With oil above $100 a barrel, exploration that is profitable at $60 can get a loan.
Opening up exploration helped too.
Quote:
Originally Posted by Hoonose
That I believe to be both fortuitous and fortunate. Fortuitous in that newer extraction technologies finally came on board. Fueled by low interest rates. And fortunate in that without the oil boomlet, our overall economy would have lagged even more with its recovery.
My read is not recover. Unless you hand the people at the bottom cash. And a lot of it.
Greece should hand there people About 3,000 euros each that is only good in Greece.
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