Reuters: US economic meltdown - Oil shock threatens lasting changes to U.S. economy - -by Emily Kaiser and Matt Daily
US economic meltdown: Oil shock threatens lasting changes to U.S. economy - by Emily Kaiser and Matt Daily
Oil's relentless price rise has pushed U.S. drivers off the road, curbed consumers' appetite for expensive goods, forced airlines into their deepest cuts in years and threatened car makers with a flood of red ink. It all points to a dramatic shift in the U.S. economy as oil's surge above $130 per barrel forces already cash-strapped households and companies to rethink business as usual, and the changes are likely to be lasting, even if energy prices retreat. "The weakness in the United States economy in housing, that we have read about for over a year, with the mortgage crisis and credit crunch, was one blow. But oil is another blow, and it's probably one blow too many," Dow Chemical (DOW.N: Quote, Profile, Research) Chief Executive Andrew Liveris told Reuters.
