Why I think economic growth will sputter by May

The economy, it seems, is back on track to recovery. Unemployment (U3)
is down to 8.3% (U6 to 15.1%), all the leading indicators are up, and
the stock market is roaring back.

I think it's going to come to a screeching halt in May.

Why? Here's why.

After rising 19 cents a gallon in the past four weeks,
regular unleaded gasoline now averages $3.48 a gallon, vs. $3.12 a
year ago and $2.67 in February 2010.

Prices could spike another 60 cents or more by May.

Which means tighter budgets, less consumer activity, and therefore,
less economic activity overall.

But oil companies will have record profits - again - because most of
them have a vertical monopoly from drill to gas pump.

Ultimately, the faster we get off of gasoline and petrodiesel as our
main transportation energy supply, the better our economy will be.

Why I think economic growth will sputter by May

The economy, it seems, is back on track to recovery. Unemployment (U3)
is down to 8.3% (U6 to 15.1%), all the leading indicators are up, and
the stock market is roaring back.

I think it's going to come to a screeching halt in May.

Why? Here's why.

After rising 19 cents a gallon in the past four weeks,
regular unleaded gasoline now averages $3.48 a gallon, vs. $3.12 a
year ago and $2.67 in February 2010.

Prices could spike another 60 cents or more by May.

Which means tighter budgets, less consumer activity, and therefore,
less economic activity overall.

But oil companies will have record profits - again - because most of
them have a vertical monopoly from drill to gas pump.

Ultimately, the faster we get off of gasoline and petrodiesel as our
main transportation energy supply, the better our economy will be.