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b_b · 3232 days ago · link · · parent · post: Why the oil crunch could be worse than the housing crisis
How does the $2 trillion in outstanding oil debt compare to the outstanding housing debt in 2007-9? Even if the haircut for the banks is similar, I don't think that the average homeowner will feel the pinch quite as bad as the last credit crisis. There was a lack f available credit, but there wasn't as dramatic a lack as they made it seem. Getting a loan was more onerous than it should have been, because the pendulum swung too far in the risk-averse direction. Goldman, Citi, BoA were all sitting on mountains of cash for a few years that they refused to give to anyone. Anyway, a little attrition in the oil business might be a good thing in the medium to long term. High oil prices are the best stimulus for cleaner technology.