Bailout plan effecting oil prices.

Bailout plan effecting oil prices
Rachael Morgan 10-10-08 2:35pm

With our economy is such a slump the government has come up with a seven-hundred billion dollar bail-out plan. The plan is meant to go into lending firms and into the economy to bust it back up. Whether this plan is put into effect will affect oil prices a great deal, whether it is for the better or worse.
If the bail-out plan is not put into effect “the economy will plunge into a serious recession” and already steadily dropping oil prices will continue to drop to a projected fifty dollars a barrel.
If however the bail-out plan works and a global recession are avoided, oil prices will rise and be pushed to around one-hundred and fifty dollars a barrel by July.
The U.S recent stock market drop has not only affected the United States economy, but also that of Britain and all over Europe “Prompting a three-hundred and fifty billion dollar bail-out plan and talk of more to come across the continent.”
Although analyst has taken the middle ground about the coming changes in oil prices, meaning they don’t believe that either of the extremes will be met, the changes will have a dramatic affect on the economy. If the bail-out plan works, there will be a higher demand for gas and oil products, meaning that gas prices will shoot up to staggering prices, but the economy as a whole will be healthier. If the plan doesn’t work the demand for gas will continue to lessen and prices will slowly continue to slide. The economy will also continue to fail and a possible second depression could be in our futures.

http://money.cnn.com/2008/10/07/news/economy/oil_prices/?postversion=2008100813