Sunday, June 22, 2008

Topical Joke



I thought this joke was a direct reflection of the American consumer of 2008. I'm amazed that people can afford to do ANYTHING anymore. With the price of gas going to unprecedented levels, food prices skyrocketing, and a high percentage of homes in forecloser, how do people buy anything anymore? You may thing that the home foreclosures and high gas prices aren't related, but they are in direct relation to each other. Here's why:

When the housing market collapsed because of all the subprime mortgages going in foreclosure, the amount of debt in the economy jumps, which greatly affects the economy and the value of the dollar. As the economy slumps, so does the value of the dollar. Since oil is priced in those low value dollars, the price of oil goes up because it takes more dollars to buy the same oil that we had a year ago. The solution: People slow the demand for gas, use public transportation, and only buy something if you can afford it. That would help the economy, help the price of oil go down, and help the whole world out. That's ECON 101 from me.

0 comments: