Surging oil could set off another financial crisis
Monday, December 20, 2010
Monday, 20 December 2010
From The Economic Collapse:
Oil prices are starting to spin out of control once again.
In London, Brent North Sea crude for delivery in February hit $91.89 a barrel on Friday. New York crude moved above $88 a barrel on Friday. Many analysts believe that $100 oil is a virtual certainty now. In fact, many economists are convinced that oil is going to start moving well beyond the $100 mark.
So what happened the last time oil went well above $100 a barrel?
... [W]e had a major financial crisis. Not that subprime mortgages, rampant corruption on Wall Street and out of control debt didn't play major roles in precipitating the financial crisis as well, but the truth is that most economists have not given the price of oil the proper credit for the role that it played in almost crashing the world economy.
... [N]ow that oil prices are on a relentless march upward again, what can we expect this time?
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