You know, there’s a school of thought that the proximate cause of the Great Recession wasn’t the housing bubble, too much bank-created money, or “liar’s loans” but rising oil prices. Just a thought.
You know, there’s a school of thought that the proximate cause of the Great Recession wasn’t the housing bubble, too much bank-created money, or “liar’s loans” but rising oil prices. Just a thought.
Its not that implausible in this sense. The rapid rise in oil prices pre-crisis is only matched by the run up in 1979-1980. (recession). What happens when a long run of easy credit stretches debt service requirements, and the economic waters then get rough?
It would be the analog to disequilibrium in a chemical system when a catalyst gets the latent required reaction over the hump.