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buffalonate (48.15)

July 2011



Time To Sell!

July 06, 2011 – Comments (9)

If gas prices are high economic growth will inevitably slow.  Economist James Hamilton has shown that gas price spikes usually leads to a recession 3/4 of a year later.  His work has also proved that a rise in the gas price destroys consumer sentiment.  Since we are coming from such a deep recession he doesn't think we are headed back into a recession but he believes high gas prices will definitely slow grow considerably in 2011.  Here is an article by him talking about how gas prices hurt GDP growth.  The last crappy jobs report sent the market into a death spiral and I strongly believe this will happen again Friday.      [more]

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