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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (69994)	7/21/2008 11:06:38 PM
From: Snowshoe	Read Replies (1) \| Respond to of 74559

>>So Americans shouldn't be grizzling too much at only $4 per gallon.<< The problem is LEVERAGE! The US economy boomed for decades on the twin levers of cheap energy and easy credit. Now those levers are being slammed violently in the other direction, with dramatic results. When the US gasoline price rocketed past $4/gallon it killed the SUV. Used SUVs are stacking up by the thousands, and SUV production lines are rapidly shutting down. Some auto plants will be switched over to make compact cars, but millions of newly impoverished Americans will simply stop owning cars. Shiploads of used SUVs will be exported abroad to new "cheap fuel economies" like Russia.