$5 Gas And The Coming Recession

Investment bank Morgan Stanley believes the lack of oil imports will drive oil to $130 and gas to $5 per gallon. The fact of the matter is gas prices are already $5 across most of the US. This will challenge the household budgets of many lower and middle income households, cutting their discretionary incomes. And, consumer spending is 70% of GDP. A recession is on the way without an immediate resolution to the oil problem.