Rising Energy Prices Could Cause 2008 Redux (Margin and Credit Squeeze)

Oil analyst, Gregor Macdonald, was featured on Max Keiser's show on 1/14/2011 and it's a must see. He mentioned how lower oil production and higher energy prices could affect the credit markets, global stock markets, U.S. economy and oil revenues. Who remembers 2008? Here's a quote by Gregor from video #2 (embedded below):

"As energy prices rise, it crowds out all consumption outside of energy and food purchases. And that will soon enough make global stock markets choke" (due to "margin compression from U.S. corporate profits" and the "declining ability for OECD consumers to increase consumption outside of energy and food")

See Video #1 and #3 at MaxKeiser.com - On the Edge with Gregor Macdonald – 14 January 2010.

Light Sweet Crude Oil Index (XOIL) courtesy of FreeStockCharts.com
The June 2011 Oil Future is at $94.17