Monday, October 18, 2004

Is Alan Greenspan on The Crack? Part II



Oil broke the $55 a barrel mark today and yet Mr. Greenspan insists that the record price does not yet represent a serious threat to the economy. I wonder whether a collapse of the commercial airline industry would do the trick?

Today's Atlanta Journal Constitution is running an article entitled "Fuel bills cripple airlines". Now I know this is no "Bin Laden Determined To Attack Within United States," but you would think that this might get his attention:
"Collectively, U.S. airlines are expected to spill $5 billion in red ink this year and $2.2 billion in 2005, according to Michael Linenberg, airline analyst for Merrill Lynch. If oil prices remain above $50 a barrel next year, losses could widen to $6.5 billion."
Again, compared to our $7.4 trillion debt, this is chump change, but given that we're all going to be walking soon when we can't afford an airline ticket or a full tank in our Cadillac Humungoid, I think the economy might just be affected.

It's been asked before, but bears repeating: "Where are this country's impacted CEOs demanding greater fuel efficiency and alternative energy sources?
Hell, if China can design a car that runs on hydrogen peroxide in three months, don't doubt for a second that this great country couldn't design a car that gets 80 miles to the gallon - or better yet, one that doesn't run on gas at all.

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