It’s an Energy Shock, stupid.

Here’s a guy I have a lot of respect for – Paul Volcker. I even give Obama points for choosing him as an advisor.  Why doesn’t Volcker (or anyone else but Larry Kudlow) mention the obvious: This recession was caused by a giant energy shock!  When $150 oil met an overleveraged economy, that was it.

When oil went to $150 per barrell last year, everyone’s expenses went up. Even businesses had to pay more to ship things or operate offices.  Now, we’re seeing the effects.

I saw an article that said we lost more jobs in January than in any other month since 1974.  Hmmm… is there anything that happened in 1973 that might be similar to 2008?

Anyway, here are Volcker’s comments:
Article with comments from Paul Volcker