The Detroit Free Press is watching gas prices very closely, and they should. While all regions in the United States will suffer from gas prices, we know Detroit was hit hard in 2008 thanks to rising fuel costs. DFP writes:
It won’t be long before we’re paying $4 a gallon for regular unleaded gasoline, at least if prices keep going up at their current pace.
Prices have already surged 38 cents a gallon in metro Detroit since President’s Day and likely will jump again by early next week as crude oil prices shot up nearly $3 Friday to $104.63 a barrel.
What happened in 2008? Gas prices rose and the economy went south. What happened in Detroit? Well, their most profitable vehicles--trucks and SUVs sat on lots unsold. Detroit had a horrible year and soon all three manufacturers were looking for bailouts, although Ford walked away while GM and Chrysler took their bailouts. As well, high fuel costs of 2008 left more Americans with less of their paychecks, and that all figures into the Americans failing to meet their mortgage obligations as it cost more to go to work and heat their homes.
In 2008, the high gas prices was a short cycle and in the fall fuel prices started to fall again, but the damage was done. In 2011, the dollar is worth less, food prices are up, fuel prices are way up and the real problem is we haven't hit summer driving season.
So what does Obama do? You know the president they sold as the smartest man ever to run for president...
Get this from the Politico:
The Obama administration late Friday appealed a judge's orders directing the Interior Department to act on several Gulf of Mexico deepwater drilling permits.
The appeal is the latest salvo in the ongoing fight over the speed with which Interior is – or isn't – letting oil drillers get back to work after last year's BP oil spill.
The economy is fragile, and Obama is doing his best to ensure it doesn't recover.
