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Higher gas prices could cause wider economic slowdown, economist says

Financial Post, Canada -- Gasoline prices, already near record highs of $1.40 per litre this week, could rise further if Middle East tensions escalate, further dampening the economic outlook.

“Especially if the situation in the Middle East were to worsen, we could see $1.60 per litre,” said Sal Guatieri, vice-president and senior economist at Bank of Montreal. “Under that scenario our economy would slow meaningfully and our unemployment rate would go up.”

Oil prices are expected to remain relatively steady at about US$100 per barrel for the next year, which Mr. Guatieri said would either stabilize gas prices or even cause them to decline a little. However, he cautioned there was a “not insignificant” risk of the cost jumping another 25% (a 30% cumulative increase from last year) if tensions .....

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Submitted Apr 06, 2012 By: Gas User

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bwatchingu Champion Author Arkansas Posts:1,859 Points:627,925 Joined:Jan 2009	Message Posted: Apr 8, 2012 10:12:30 AM Ignore bwatchingu Report Abuse DUH! It already is
bigmoo63 Champion Author Kalamazoo Posts:1,284 Points:84,610 Joined:Nov 2009	Message Posted: Apr 8, 2012 9:57:48 AM Ignore bigmoo63 Report Abuse Ya think? Thank you captain obvious.
northeast2 Champion Author New York Posts:3,849 Points:1,007,200 Joined:Mar 2008	Message Posted: Apr 7, 2012 2:56:18 PM Ignore northeast2 Report Abuse Restating the obvious.
bruin19MD Champion Author Maryland Posts:1,108 Points:174,890 Joined:Feb 2011	Message Posted: Apr 7, 2012 2:31:13 PM Ignore bruin19MD Report Abuse I agree. Fuel matters in cost of almost everything.
DanMtz Champion Author Oakland Posts:3,496 Points:1,271,125 Joined:Oct 2009	Message Posted: Apr 7, 2012 1:08:20 PM Ignore DanMtz Report Abuse And that's your Econ 1A lesson for today.
md11capt Champion Author Denver Posts:3,558 Points:729,930 Joined:Mar 2011	Message Posted: Apr 7, 2012 12:20:26 PM Ignore md11capt Report Abuse Darn, I was going to say that.
CiVX Champion Author Oakland Posts:7,146 Points:1,384,135 Joined:Feb 2009	Message Posted: Apr 7, 2012 12:14:05 PM Ignore CiVX Report Abuse Really.
humblepie Champion Author Toledo Posts:35,341 Points:2,399,070 Joined:Mar 2006	Message Posted: Apr 7, 2012 11:57:27 AM Ignore humblepie Report Abuse brilliant, just brilliant.
gs7101 Champion Author San Antonio Posts:5,658 Points:396,020 Joined:Jun 2009	Message Posted: Apr 7, 2012 9:28:36 AM Ignore gs7101 Report Abuse The higher gas prices are already having an impact on most people. There's very little money left in the budget to splurge on non-essential items.
qwerty17 Champion Author New Jersey Posts:3,760 Points:1,144,050 Joined:Oct 2009	Message Posted: Apr 7, 2012 9:13:40 AM Ignore qwerty17 Report Abuse i'm shocked - shocked to see that higher gas prices could cause wider economic slowdown.
majormarket All-Star Author Houston Posts:861 Points:809,400 Joined:May 2008	Message Posted: Apr 7, 2012 8:59:52 AM Ignore majormarket Report Abuse Like others here, I'd say that it already has a restraining effect on our economy. But, I think high gas prices will continue to be a drag on the economy. Will it tip us back into recession? I don't think so - but there will still be more small businesses and consumers who will get ground up as the economy sputters along.
BBopp Champion Author Dayton Posts:6,944 Points:1,956,930 Joined:Dec 2006	Message Posted: Apr 7, 2012 8:51:15 AM Ignore BBopp Report Abuse Could cause? It will cause and has been doing so for quite some time.
TruthMatters Champion Author New Jersey Posts:2,586 Points:558,555 Joined:Oct 2011	Message Posted: Apr 7, 2012 8:22:07 AM Ignore TruthMatters Report Abuse You don't say!
JamesCalvin Champion Author Lancaster Posts:3,344 Points:547,255 Joined:Nov 2011	Message Posted: Apr 7, 2012 8:00:32 AM Ignore JamesCalvin Report Abuse Making Americans into serfs and plantation WORKERS WAS NOT ONLY THE PLAN LONG AGO... it is reality NoW!
Joeski1 Champion Author New Jersey Posts:10,210 Points:1,769,535 Joined:Dec 2004	Message Posted: Apr 7, 2012 7:48:18 AM Ignore Joeski1 Report Abuse a good ole fashioned war with iran should really help things along... look how much we advanced iraq and afghanistan... the world is a much better place now and we're doing just great too!!! RIP: Joseph D'Augistine (latest Nj military member killed in foreign war)
Joeski1 Champion Author New Jersey Posts:10,210 Points:1,769,535 Joined:Dec 2004	Message Posted: Apr 7, 2012 7:46:19 AM Ignore Joeski1 Report Abuse nah... the economy is gimping along like an old man with a cane that really could use a rollator...
scu227 Champion Author New Haven Posts:4,308 Points:799,580 Joined:Feb 2011	Message Posted: Apr 7, 2012 7:30:37 AM Ignore scu227 Report Abuse It already has !! Oil Companies and Speculators are ruining any chance of economic recovery.
gawxnative All-Star Author Atlanta Posts:510 Points:232,040 Joined:Aug 2006	Message Posted: Apr 7, 2012 7:20:56 AM Ignore gawxnative Report Abuse Already happening...less disposable income= less consumer spending
dsaine Champion Author North Carolina Posts:3,150 Points:659,220 Joined:May 2011	Message Posted: Apr 7, 2012 7:04:05 AM Ignore dsaine Report Abuse I agree.
ReddevilNO Champion Author New Orleans Posts:3,481 Points:600,090 Joined:Aug 2011	Message Posted: Apr 7, 2012 6:55:57 AM Ignore ReddevilNO Report Abuse Yep!!!!
mike1881 Champion Author Fayetteville Posts:1,437 Points:592,125 Joined:Feb 2011	Message Posted: Apr 7, 2012 6:36:55 AM Ignore mike1881 Report Abuse Geniuses who wrote this article. I think I am going to become a writer and write about steps to save gas, i.e. keep your tires inflated, and high gas prices are slowing the economic recovery. That is pulitzer prize winning stuff these days.
WalRus49 Champion Author Boston Posts:4,215 Points:896,565 Joined:Nov 2010	Message Posted: Apr 7, 2012 6:28:24 AM Ignore WalRus49 Report Abuse More organized mayhem and pillage..............
Pozole Champion Author Portland Posts:9,766 Points:1,622,220 Joined:Mar 2005	Message Posted: Apr 7, 2012 4:33:00 AM Ignore Pozole Report Abuse ...ALREADY IS...
TRYWI All-Star Author Appleton Posts:898 Points:282,150 Joined:Jan 2012	Message Posted: Apr 7, 2012 3:41:04 AM Ignore TRYWI Report Abuse good
OTISFL Champion Author Pensacola Posts:4,745 Points:892,540 Joined:Apr 2009	Message Posted: Apr 7, 2012 3:18:34 AM Ignore OTISFL Report Abuse COULD cost economic slowdown?!!!! What a rediculous article to even be written as though the consumers are total dummies.
ClarkSC Champion Author South Carolina Posts:3,219 Points:1,039,105 Joined:May 2010	Message Posted: Apr 7, 2012 1:43:17 AM Ignore ClarkSC Report Abuse Of course.
Jeff4U Champion Author Atlanta Posts:8,895 Points:1,879,930 Joined:Nov 2004	Message Posted: Apr 7, 2012 1:31:47 AM Ignore Jeff4U Report Abuse Man who run in front of car gets tired .. Man who run behind car gets exhausted.
investmentdr Champion Author Cleveland Posts:4,127 Points:1,480,910 Joined:Sep 2008	Message Posted: Apr 7, 2012 1:29:30 AM Ignore investmentdr Report Abuse really
BJWI Champion Author Milwaukee Posts:6,554 Points:763,925 Joined:May 2011	Message Posted: Apr 7, 2012 1:22:58 AM Ignore BJWI Report Abuse common sense would tell you this.
Sisu58 Champion Author Michigan Posts:1,379 Points:368,700 Joined:Jun 2008	Message Posted: Apr 7, 2012 1:15:32 AM Ignore Sisu58 Report Abuse Ya think?
anascom Champion Author Hamilton Posts:1,593 Points:556,690 Joined:Feb 2011	Message Posted: Apr 7, 2012 1:14:45 AM Ignore anascom Report Abuse i agree with you @ 52MPG ! replace could with : Have caused or Will cause
52MPG Champion Author Dayton Posts:7,402 Points:1,769,405 Joined:Apr 2006	Message Posted: Apr 7, 2012 12:59:58 AM Ignore 52MPG Report Abuse Replace could with will.
alterman156 Champion Author New York Posts:7,625 Points:1,584,250 Joined:Dec 2008	Message Posted: Apr 7, 2012 12:54:39 AM Ignore alterman156 Report Abuse Perhaps the rise in gasoline prices will cause the economy to slow down enough because too much money is being spent on fuel. Then the whole thing of keeping fuel prices high will be self defeating as they could end up crashing as they did in late 2008.
pbear316 Champion Author Akron Posts:2,160 Points:704,390 Joined:Apr 2011	Message Posted: Apr 7, 2012 12:37:25 AM Ignore pbear316 Report Abuse We can't win. When prices drop, it's because of economic slowdown. But high prices cause economic slowdown.
MidNJ Champion Author New Jersey Posts:7,686 Points:1,197,290 Joined:Sep 2009	Message Posted: Apr 7, 2012 12:31:04 AM Ignore MidNJ Report Abuse TomT, When you say they are looking out for #1 Do you mean they are looking out for you and me?
el_fr Champion Author Massachusetts Posts:3,477 Points:772,400 Joined:Apr 2011	Message Posted: Apr 7, 2012 12:21:09 AM Ignore el_fr Report Abuse Could?? Will!!!
wrunner Champion Author Virginia Posts:4,582 Points:1,164,060 Joined:Dec 2009	Message Posted: Apr 7, 2012 12:21:06 AM Ignore wrunner Report Abuse You don't say! Say it isn't so! Say it like it is! Say you, say me! Just say no! If we do not have a say, say so! Say no more! You say yes, I say no.... You say goodbye and I say hello.... Say like you mean it and say what is in your mind! Wise men say.... What else would you like me to say?
cheapchickKY Champion Author Lexington Posts:4,159 Points:823,990 Joined:Jan 2011	Message Posted: Apr 7, 2012 12:07:23 AM Ignore cheapchickKY Report Abuse Looking for any reason for high prices.
lesndave Champion Author Texas Posts:3,173 Points:728,630 Joined:May 2011	Message Posted: Apr 6, 2012 11:54:01 PM Ignore lesndave Report Abuse Nothing new here
akitaone Champion Author Tampa Posts:1,342 Points:89,545 Joined:Feb 2011	Message Posted: Apr 6, 2012 11:53:26 PM Ignore akitaone Report Abuse old news, we all here understand that like 2+2=4 high prices=economic slow down
amerk73 Champion Author Dallas Posts:7,190 Points:1,648,780 Joined:Oct 2008	Message Posted: Apr 6, 2012 11:44:22 PM Ignore amerk73 Report Abuse economi slow high gas price
davenles Champion Author Texas Posts:3,336 Points:746,360 Joined:May 2011	Message Posted: Apr 6, 2012 11:38:07 PM Ignore davenles Report Abuse No new insight here.
CVA19 Champion Author Salem Posts:2,393 Points:632,975 Joined:Aug 2011	Message Posted: Apr 6, 2012 11:00:49 PM Ignore CVA19 Report Abuse To his credit, Guatieri is a bank (experienced) economist, not an academic (non-experienced) one like those surrounding our omnipotent and omniscient, yet humble and benevolent president.
Yooperheart Champion Author Michigan Posts:3,565 Points:554,725 Joined:Feb 2010	Message Posted: Apr 6, 2012 10:51:30 PM Ignore Yooperheart Report Abuse Him be a geenius.
A_NY_Outlaw Champion Author Albany Posts:1,409 Points:730,560 Joined:Mar 2011	Message Posted: Apr 6, 2012 10:04:27 PM Ignore A_NY_Outlaw Report Abuse It took an economist to do come up with this? No wonder our country is in the shape it is. Jeeesh.
dbecks44 Champion Author Michigan Posts:1,477 Points:459,680 Joined:Jan 2012	Message Posted: Apr 6, 2012 9:33:18 PM Ignore dbecks44 Report Abuse I chuckled a little when I saw "not insignificant" in there. What a politician's way of speaking.
graceman Champion Author Baltimore Posts:4,968 Points:1,158,725 Joined:Jun 2008	Message Posted: Apr 6, 2012 9:33:16 PM Ignore graceman Report Abuse Boy this guy is brilliant,Not!
Bussman Champion Author Dallas Posts:5,668 Points:1,386,910 Joined:Nov 2008	Message Posted: Apr 6, 2012 9:26:22 PM Ignore Bussman Report Abuse Hope they don't pay that economist much to make a prediction like that.
bandannaman Champion Author New Jersey Posts:1,849 Points:365,610 Joined:Dec 2010	Message Posted: Apr 6, 2012 9:10:01 PM Ignore bandannaman Report Abuse Is that US dollars or Canadian dollars?
TomT2Lee Champion Author Cincinnati Posts:5,471 Points:1,623,885 Joined:Sep 2005	Message Posted: Apr 6, 2012 8:52:12 PM Ignore TomT2Lee Report Abuse and higher prices could lead to the Federal Reserve printing more money. Oh, wait, they already have been doing that, which has devalued the dollar and led to higher commodity prices. Don't worry people. Relax. The professional politicians are looking out for number one!