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Hurricane Ike put most of the oil processing plants in the Houston area offline, which led to a US-wide spike in gas prices. I've been there when it happened an
by kdavyd 7y ago
Hurricane Ike put most of the oil processing plants in the Houston area offline, which led to a US-wide spike in gas prices. I've been there when it happened and it wasn't pretty.
- rohit2412 7y agoHe's probably implying a correlation with the 2008 recession.
- Jweb_Guru 7y agoI'm not implying a correlation--there is one, along with a very longstanding correlation between oil consumption and GDP. What I'm implying is the much more contentious claim that this relationship has a strong causal component, too.
- rohit2412 7y agoWeird. I thought it was common opinion that recession occured from housing mortgage defaults and the subsequent credit crunch.
- BlueTemplar 7y agoWhat started the mortgage defaults though ? (And, also, couldn't cheap oil have maybe helped with the overbuilding of houses in the first place ?)
- tatersolid 7y ago> What started the mortgage defaults though? Good old-fashioned fraud. Oil prices had nothing to do with it. Source: acquaintance who spent three years in court testifying about the rampant fraud in the mortgage industry. He worked for an investment bank which is no longer with us.
- BlueTemplar 7y agoI'm well aware of the structural fraud. My point is that the reason that the bubble popped at that point (and not some years later) were the skyrocketing oil prices, themselves a consequence of (conventional) peak oil. But I guess that it's a bit academical, as that bubble would have popped soon enough anyway...