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Nov 21, 2008 8:00 pm US/Central
Upside To Economic Crisis: Lower Gas Prices
UNION, N.J. (CBS) ―
It turns out there is an upside to the economy's steep backslide, reports CBS station WCBS-TV in New York.
Gas prices have fallen to levels we haven't seen since 2005. The national average is just above $2 a gallon for regular.
In an ironic twist, analysts believe the nosebleed-inducing gas prices that squeezed so many wallets earlier this year, triggered a fundamental change in behavior and a drop in demand. People began driving less, taking mass transit, and car pooling.
"The recession has a spiral down effect that seems to be hitting all sectors across the board of the economy. People aren't traveling, people aren't driving." Doreen Mogavero a New York Stock Exchange Trader tells CBS 2 HD.
Plus, credit markets have once again all but seized up and stocks like Citigroup continue to plummet. Experts say the result is a near toxic atmosphere of uncertainty that has investors running scared.
"The uncertainty has got to play out. And people have to be more clear in terms of the market as to where the economy is going, how bad the recession is going to be, and the health of the credit markets has to be vastly improved." Eric Ristuben with Russel Investment Group explains.
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