The high gas prices have a lot to do with it. Spending too much money for fuel causes a ripple throughout the economy. Plus the higher costs are passed on through the chain of doing business and affects consumer goods. So in essence people are paying more to fuel their cars and also paying more for goods and services. That leaves fewer dollars for other necessaties and fewer dollars to purchase from businesses.
Mutt,
It depends on whether you are reading the headline (
written by the media, in the link,) .... or looking at what Santorum actually said originally (
before he backtracked and qualified it after he made the remarks)
My comments were directed at the latter:
".... it was high gas prices, not dubious lending practices or complex Wall Street trades, which torpedoed the housing market in 2008 and brought on the current prolonged economic slump."
Gas prices ran up from 2001 to 2005 and then spiked multiple times
before 2008 ..... and it had no apparent effect on the housing market.
While gas prices no doubt played a part in the health of the overall economy (
since much of the economy is tied to the cost of transportation), I'd say that there were many, many factors that "torpedoed the housing market" - including, but not limited to: low teaser mortgage rates, over-valuations, excessive personal debt, and bad lending practices loaning money to unqualified buyers that had a lot to do with it as well.
The point really is, that to say that it was
only high gas prices (as Santorum originally claimed), is infinitely stupid - because it seeks to (falsely) simplify a complex situation that had many factors driving it.
That's why Santorum "clarified" his original remarks when he was called on it ....
if he hadn't, he would have been eaten alive.