Higher Oil Prices

Yesterday, I filled up and was kind of shocked to see gas at $3.33 per gallon! Usually I try not to look at the price of gas, to avoid heartburn but this did get my attention. There’s an article over at Yahoo Finance called Why Higher Oil prices Will Clobber the Economy.

The bulls argue that “this time is different” saying today’s consumers have handled  oil above $100 a barrel, so far and they will be able to handle it and the economy will keep rolling!Me, i’m not so sure-I see more and more people buying a certain amount of gas and they are not completely filling up. I’m very concerned about gas creeping towards $4 and $5 dollars a gallon.

Lance Roberts makes a good observation:

Consumers are being forced to spend more on oil and gas, and this is boosting overall consumer spending. This increase in spending is not the result of consumers feeling better about the economy and thus loosening their purse strings.

I’m going to have to agree with Roberts-this will screw peoples cash flow up and make things pretty tough for the economy. How about you-are higher gas prices catching your attention and messing with your budget?

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