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My neighborhood’s cheapest gas price at the pump, jumped from $1.66 about 10 days ago to $1.82 today. That is too close to the $2.00 mark.  

My earlier analysis showed that the US economy slows down if pump prices exceeds $2.00 a gallon. So don’t expect an early recovery, this year. At this rate we are looking at a recovery in 2010 at earliest.

Here, Oil prices slump below $44 on inventory report, we have confirmation that consumers are conserving cash for really important things like potentially expensive commutes to work and back, for those who still have jobs. That has caused reductions in consumption purchases and resulting reduction of trucking of goods.

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  1. […] Laureate, has expressed similar concerns about the effect of oil prices on the economy as I have in Watch the Pump Prices. That is really […]

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