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Eye On Oil
April 27th, 2011 8:01 AM

We are all feeling the pinch of escalating gas prices and not only is this hurting our personal finances, but it could very well plunge our economy back into a recession.

A recent article by a chief economist for the National Association of Realtors explains his view on the oil situation, but also on the importance of homeownership in our country:

"Households, which have been the main driver thus far of economic recovery, are tapped out.  Not only does unemployment remain high, but the bulk of household wealth is tied to home equity, so many are starting at a lower net worth. But now, just as business spending is poised to grow, the global economy faces potential shocks from the rise of unrest in the Middle East and Northern Africa.

Although Egypt isn't a big oil exporter, Libya is, and so are many countries in the region.  If oil prices are sustained over the year at $100 a barrel or higher, Americans will end up spending $220 million more each day for gasoline and other energy costs.   That's money that flows out of the country.

Events in the Middle East stand to have a major impact on business, but the turmoil also helps to highlight the benefits we enjoy here with the rights of home ownership and private property  As President Franklin Roosevelt said some 60 years ago, a nation of homeowners is unconquerable."

Once again, it is homeownership and real estate that is the backbone and life blood to our economy being  healthy and strong once again.

 


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Posted by Barbara Doeringer on April 27th, 2011 8:01 AMPost a Comment

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