Confidence Is the Biggest Threat To Economy

Rising oil prices, government deficits, falling real estate prices, etc. are all symptoms of a greater problem. The problem is excessive debt. The greatest obstacle that threatens to derail the liquidity-driven recovery is loss in confidence in the policies (and financial instruments behind them) used to mitigate this burden. This rising price of gold across all global currencies conveys this message.

Biggest Threats To the Economy:


Headline: What has economists most on edge: Oil prices

The U.S. economy faces numerous obstacles that threaten to derail the recovery. But economists are most fearful of one major headwind: oil prices.

More than two-thirds of the 23 economists surveyed by CNNMoney identified high oil prices as the most serious risk facing the economy.

As uprisings spread across the Middle East and North Africa, prices have soared about 15% in the past two months, pushing gas prices higher. And as the situation in Libya escalates, economists are growing more jittery about oil prices, even in the face of other threats to the economy, like the crisis in Japan, cuts in government spending and continued weakness in the housing sector.

Source: money.cnn.com