Are Investors waking up ?
Are Investors Waking Up?
When will the second shoe drop? The 214-point nosedive in the Dow yesterday was again blamed on the impact of high oil prices, and signals what will happen whenever it finally sinks in that this problem is not going away and will wreak unfathomable havoc on the U.S. and global economy.
The domino effect of the “peak oil” crisis facing the globe is what sends market investors scurrying, even if up until now it has been only in fits and spurts. Yesterday, for example, a higher-than-expected rise in the core consumer price index (CPI) was interpreted, in Wall Street’s usual lemming-like fashion, to mean that high oil prices are, indeed, reverberating throughout the economy. The core CPI does not include direct energy costs, and its rise was interpreted as
( Full story here )
When will the second shoe drop? The 214-point nosedive in the Dow yesterday was again blamed on the impact of high oil prices, and signals what will happen whenever it finally sinks in that this problem is not going away and will wreak unfathomable havoc on the U.S. and global economy.
The domino effect of the “peak oil” crisis facing the globe is what sends market investors scurrying, even if up until now it has been only in fits and spurts. Yesterday, for example, a higher-than-expected rise in the core consumer price index (CPI) was interpreted, in Wall Street’s usual lemming-like fashion, to mean that high oil prices are, indeed, reverberating throughout the economy. The core CPI does not include direct energy costs, and its rise was interpreted as
( Full story here )
posted by Oil Shock at 5/18/2006 10:32:00 PM
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