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buffalonate (95.93)

July 2011

Recs

6

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.  http://www.firstenercastfinancial.com/news/story/42821-prominent-economist-says-oil-price-surge-not-recessionary  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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