The price of oil collapsing during 2008 was the result of the financial collapse, not the cause of it... The financial collapse was triggered by (but also not caused by) rising interest rates which poked a giant hole in the mortgage industry, causing the defaults that quickly deflated the mortgage derivatives industry. Loses caused by that drove institutional investors to sell equities in order to make up for the loss, which drove down stock prices resulting in the market tanking overall.. In actuality, the drastically rising price of oil in 2007 caused a steep rise in the CPI during 2007-2008 which help spur the fed into raising rates because of inflation concerns from rising fuel prices.
Latest Comments
Guess What Happened The Last Time The Price Of Oil Crashed Like This
The price of oil collapsing during 2008 was the result of the financial collapse, not the cause of it... The financial collapse was triggered by (but also not caused by) rising interest rates which poked a giant hole in the mortgage industry, causing the defaults that quickly deflated the mortgage derivatives industry. Loses caused by that drove institutional investors to sell equities in order to make up for the loss, which drove down stock prices resulting in the market tanking overall.. In actuality, the drastically rising price of oil in 2007 caused a steep rise in the CPI during 2007-2008 which help spur the fed into raising rates because of inflation concerns from rising fuel prices.