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Monday, July 06, 2009

My real fear about the economic recovery

Last week's jobless numbers came in higher than expected, that after having coming in lower than expected the previous month, which essentially means we are on pace for a slow road back to recovery. But my biggest fear isn't the jobless numbers -- it's a lagging indicator -- it is that oil is already back above $70 a barrel even though supply is highand the struggling economy has suppressed demand. A few months ago I wrote that the low gas prices amounted to economic stimulus all on its own, healing the economy faster than many expected. I still believe that. But if the prices continue to rise -- for no good reason -- our economic fortunes may worsen, and that won't be good for any of us.

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