Re:Can the Oil Shock Alone Explain the Financial Crisis?
by 10ren on Thursday April 23, 2009 @11:55AM
(#575862)
Cheap gasoline from the 1990s into this decade encouraged families to set up their homes farther from the cities where they worked.
Summary: Gas goes up, families can't pay mortgage.
Crude has now dropped to about $50 per gallon - I wonder what Hamilton's model predicts from that? (of course, the drop seems mostly due to reduced demand, so it won't stay there if economic conditions improve)
Summary: Gas goes up, families can't pay mortgage.
Crude has now dropped to about $50 per gallon - I wonder what Hamilton's model predicts from that? (of course, the drop seems mostly due to reduced demand, so it won't stay there if economic conditions improve)