I just don't understand this crisis.
- People uneasy about stock market pouring money into commodities (ie oil, gold)
- Significant demand increase in developing world (China, India, Russia, Brazil)
- Geo-political unease (Isreal, Iran, Iraq, etc.)
The GDP grew at a 0.9% clip in the first quarter when gas prices were historically high. So, far the Bush rebate seems to be having a good effect on mitigating some of these high prices we're seeing now. So, if we can survive this summer with positive GDP growth for Q2, then I think think the US economy can withstand basically anything. However, there's been rumblings of another rebate which makes me think they believe things are turning sour quick. Unemployment grew to 5.5%, but that's largely due to the increase in employee cost (ie the latest minimum wage rise).