Posted by Dinah on June 29, 2008, at 16:18:43 [reposted on July 6, 2008, at 13:09:19 | original URL]
In reply to Anyone Else Starting To Fear The Economy?, posted by Phillipa on June 29, 2008, at 12:33:07
There are a lot more safeguards now than there were then. They didn't even have deposit insurance then.
But even so, panic and public perception can play a big role in going from bad to worse.
I'm not downplaying the problem, though. With rising oil prices, the cost of everything goes up. Even the things that don't contain petroleum or petroleum byproducts usually require the use of petroleum in their production and distribution. Prices will go up, and that will be hard on people.
Long term, alternative fuel sources may help a lot. But short term, they won't make a huge difference. I imagine a lot of people will have to make changes in how they live. Telecommute more. Forego the family vacation. Coordinate errands. And all that will have ripple effects on other industries. It's not pretty, and from what I hear there's not much that can be done. Demand from other nations is growing, and supply is not endless.
Unfortunately, consumer anxiety will also be a self fulfilling prophecy to some extent.
poster:Dinah
thread:838387
URL: http://www.dr-bob.org/babble/poli/20080312/msgs/838389.html