Remember my blog post (here) where I conjectured that the recent economic slump might trace its origins to a massive increase in the cost of energy?
Well, listening to JP Morgan's Chief Economist while at an ACG-NJ meeting this morning, a thought occurred to me: The two largest post-war economic crises are today and 1982.
Look at this chart below of the real cost of a barrel of oil:
(Click in the image to enlarge)
Interesting, eh? Seems like we've been here before... I am starting to convince myself that I might be right.
People keep talking about the sub-prime crisis being the cause of our economic slump. I don't think that's right. I think an energy crisis caused the beginning of a sub-prime crisis, which caused the current economic slump to be worse than ever before.