It was the repeal of Glass Steagall in 1999 that drove the financial crisis"
Or not. 10 of the last 11 recessions were caused by oil. The recession began in 12/07, but the seeds were sown right after Katrina, when carpenters began to pawn tools to buy gas to drive to work. I believe the first mention was Atlanta in Dec, '05. By April, '06,
Texans Forced To Pawn
Shops To Get Extra Gas $$
CBS 11 News
4-22-6 | DALLAS -- High gasoline prices are causing some people to take desperate measures. Pawn shops say their business is increasing, with some customers saying they're selling things to buy gas. Gas prices are climbing again, with most stations prices hovering at, or just below $3.00 a gallon. For some people the high fuel prices are overwhelming. "We just have customers come in and have to tell us that they need money 'till the end of the week, for gas to get back and forth to work," said pawn shop owner, Gerald Costner.http://www.rense.com/general70/tex.htm |
Oil shocks and economic recessions
I’ve just completed a new
research paper
that surveys the history of the oil industry with a particular focus on the events associated with significant changes in the price of oil. Here I report the paper’s summary of oil market disruptions and economic downturns since the Second World War. Every recession (with one exception) was preceded by an increase in oil prices, and every oil market disruption (with one exception) was followed by an economic recession.
James Hamilton.
econbrowser.com |
