A further cut in consumer spending will certainly damage the overall economy. Sky-rocketing Oil Prices Stir Deep Economic WorriesBy Cliff Montgomery – May 23rd, 2008Spiraling oil prices have many Wall Street investors worried that the stretched wallets of ordinary Americans could mean a further cut in consumer spending–a possibility which would certainly damage the overall economy.As Memorial Day weekend begins, travelers are finding that gas prices made yet another leap overnight. The current national average of $3.88 a gallon is a price spike of almost 20 percent–or 65 cents per gallon–since last year. And pump price increases show no signs of slowing their daily assault on our paychecks.”Four dollars (a gallon) is a done deal now,” Ritterbusch and Associates Energy Consultancy President Jim Ritterbusch told The Associated Press (AP) today.”We could go significantly above that,” he added.Stocks echoed those concerns, with the Dow Jones industrials falling almost 150 points on Friday.Wall Street investors know that consumers produce over two-thirds of all U.S. economic activity.And investors also know that consumers will have little choice but to lessen that activity, if they are to afford spiraling gas prices that already has topped $4 per gallon in some regions of the country.Light, sweet crude jumped $1.38 to land at $132.19 a barrel on the New York Mercantile Exchange. Oil gained for the third time this week on Thursday, hitting a record $135.09 per barrel.Why the raging price increases? Some experts point to a small number of investors, who are speculating that growing demand from ’emerging countries’ such as India and China will outstrip supply. The weak U.S. dollar further drives up barrel price.And some can’t help but point out the glaring fact that America’s sky-rocketing cost of gasoline has climbed hand-in-hand with “soaring profits for energy companies,” as The Washington Post stated in its May 9th edition.Whatever the cause(s) of the oil price spike, it is taking a bite from everyone else’s profits. The average American certainly is being squeezed. Even the Dow tumbled 145.99, or 1.16 percent this week, to 12,479.63–its worst weekly showing since early February.Like what you’re reading so far? Then why not order a full year (52 issues) of thee-newsletter for only $15? A major article covering an story not being told in the Corporate Press will be delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
What Happens With Congress During A Federal Shutdown?
What congressional activities are still performed during this impasse?
