Thursday, Dec 20, 2007

Oil prices take over a year to feed through into general inflation and economy. 2008 is Oil crunch time with prices 50% up on last year.

Chicago Tribune: Oil prices will swamp subprime as market driver

Here's my fearless forecast for 2008: The subprime mortgage mess will be far less important to investors next year than the price of oil. The reason is simple: We don't sell our homes once a week, but that's about how often we fill up our gas tanks.

Posted by planning4acrash @ 10:56 PM (188 views) Add Comment

1 Comment

1. Donald Dross said...

Wrong. As house prices fall, more and more homeowners will abandon their homes. This means that ordinary mortgages, well above sub-prime, will become worthless. The credit crunch will get worse. Although houses are infrequently sold, every day a homeowner can experience the decline in equity known as the wealth effect.

Thursday, January 3, 2008 01:41PM Report Comment
 

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