I distinctly remember analysts working for financial institutions telling us that the global economy could withstand $30, even $40 /bbl oil, but that $50 would be a problem? Now we’re seeing the oil price hovering above $90 and verging on the $100 threshold, and people are finally worrying about the economy. But the main trigger of our worries appears to be the knock-on effects of subprime lending.
Are analysts making educated guesses, or are they just educated people making guesses? Maybe the Upper House Financial Affairs Committee can summon them to testify under oath.