Is it time for markets to panic? Gasoline prices are approaching the “danger zone”, Copper prices indicate a more precipitous decline in risk assets, Consumers are clipping coupons at a rate not seen since before the 2007 recession… Warning signs are all over the place!

From PragCap:

… Watching the Daytona 500 from the “danger zone,” where cars whip by at high speeds of around 175 mph to 200 mph — but can also burst through the walls in a crash — can be a thrill.

But gasoline’s “danger zone” may be just plain scary.

At $3.75, retail gasoline prices are nearly back in the “danger zone” marked by the highs of around $3.85 to $4.10 per gallon seen over the past five years, as you can see in Figure 1. This range has marked a “danger zone” for market participants.

When gasoline prices reached this range in the past, it preceded the stock market slides experienced

The Rest…HERE

This entry was posted on Thursday, February 28th, 2013 at 1:34 am and is filed under Economics, Government Evil, Oil. You can follow any responses to this entry through the RSS 2.0 feed.