Add to the cheery news on the housing market front this from the Washington Times (http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20071107/BUSINESS/111070032/1001) and it is NOT a pretty picture facing the GOP going into the 2008 election - even if our gas prices continue to remain well under prices in other parts of the world. If the Democrats have any sense at all, they had best start standing up to the GOP and stressing the mess the economy is in after 7 years of GOP rule. I suspect the soccer moms will be pissed when it costs them $160 to fill up their Suburban. Here are some highlights:
Oil prices verging on $100 a barrel are the result of skimpy supplies colliding with strong growth in China, the United States and the rest of the world, and not just the work of speculators, the nation's chief energy forecaster concluded yesterday. That means gasoline prices could top a record $3.20 a gallon by the end of the year and $4 a gallon by spring, analysts say, creating a monumental energy crunch for consumers who also are facing double-digit increases in their home heating bills this winter. Regular gas prices passed back through the $3 barrier yesterday.
"A supply-side crunch in the period to 2015, involving an abrupt escalation in oil prices, cannot be ruled out," the international agency said in a report released today. The agency particularly faults the Organization of Petroleum Exporting Countries (OPEC) for failing to make the massive investments in oil exploration and drilling needed to keep up with soaring demand for energy around the world.