The problem was caused by Derivatives and sub-prime mortgages under the financial sector. The Banks started to drop like leaves in November. Small business lost their support and started laying off people in droves. Then, the housing market crashed shortly there after and Real Estate values tanked. People who had bought homes at radically inflated prices, suddenly found themselves hopelessly in the red and paying massive payments with their earnings cut in half.
The increase in fuel prices only raised the cost of commuting by under 5% in regards to most family budgets. Of course, the media likes to blame “Oil Man” Bush by wrongly claiming that it was high fuel prices to blame.
You seem to have bought that lie with interest yourself.
I appreciate the respectful disagreement. My contention is not one that would be studied by those who study such things. My evidence is anecdotal.
Families that were on the line and small businesses that were on the line were very hard hit by the high costs. Such families and businesses have very small margins and virtually no savings. In addition to the price at the pump claiming its extra hundreds per month, there were surcharges placed on the delivery of the very types of things that families and small businesses buy.
It ignited the fire at their level that put them behind. They had no capacity to operate from behind, nor any to increase their income. Something had to be underpaid, and mortgages payments become one of those things.
Those on the margin pay their mortgage, their utilities, their transportation and their food. There are no luxuries there. Utilities are quick to pounce and transportation and food are pay as you go.
If you look at that list, there is only one that will allow just enough rope to get you behind.
Your part about my “buying the lie” doesn’t fit with your claim about “respectfully” disagreeing.
However, my comment was NOT about big oil. You can refer to my long history of posting to verify that.
I was referring to some group that was engaging in market manipulation via speculation to drive up prices.
I agree with you 100 percent. You are one of those who paid attention, just like I did
The problem with the US economy is far beyond a partisan political split. Our leadership is insane, abysmally stupid and corrupt, and intentionally or not, destined to fashion the utter destruction of the USA. Unbridled regulation prevent any efficient exploitation of resources to develop wealth, taxes sweep away any motivation to trouble oneself to the task, and bureaucrats and trillions of 15 minute forms infest the life of any entrepreneur daring to try. And a plethora of elected, ignorant twits rule the roost to provide for the suffering masses. These $hits have to be flushed.