Sunday, Dec 23, 2007
Will oil prices or house prices be the major economic news of 2008?
The Oil Drum: Oil prices or subprime losses?
An interesting Post which looks in depth into a question posed by a recent article, will high oil prices or sub-prime be the biggest economic driver next year? In asking the question it brings together many of the best house price graphs and compares it against the issue of $100 oil. It is from an American perspective, but interesting nonetheless.
Posted by planning4acrash @ 10:41 AM (296 views) Add Comment
1 Comment
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. planning4acrash said...
Now, you are all a bit quiet today, maybe you are debating this on the oildrum blog instead?! OK, here's the conclusion (question) posed by the article: "To summarize, we know that IF gas prices at the pump rise by $1 per gallon, the public will have $150 billion less to spend on other purchases. Following Mr. Feldstein’s speech, we see that home prices would have to fall by 15% to cut consumer spending by the same $150 billion. Which of the two is more likely to happen?
That’s what we would like you to respond to."
Q from me: How would those figures look in UK/Europe, how far would house prices fall and how much will that dent consumer cashflow vs a 1/3 increase in petrol, and which, do you think are most likely, or, do you think both will combine to form a perfect storm for 2008/9? Answers on a postcard!