Comment 29889

By UrbanRenaissance (registered) | Posted April 02, 2009 at 16:26:03

Ryan said: "If we accept that this crisis was caused by the personal greed and irresponsibility of home buyers, we need to ask why it blew up when it did. Why not five years earlier, or a year later? Why is the housing industry not in permanent crisis?"

Personally I think it blew up when it did for one simple reason. In Hamilton, according to HamiltonGasPrices.com, gas prices peaked in mid September 2008 (shortly before things collapsed) at $1.37/L which means a 50L tank of gas cost $68.50 compare that to September of 2007 where that same tank would only cost $47, an increase of nearly 46%! To the people who were just barely meeting their financial obligations as it was, this huge cost increase was the straw that broke the camel's back.

I wonder if the speculators and oil cartels who drove up prices knew what they were leading us all to? Probably not any more than Gavrilo Princip knew that he'd indirectly start 2 world wars...

Raising the Hammer and user name character limits since '09

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