The continuing protests in the Libya have caused gas prices to rise for the European and American consumer. Libya produces roughly 1.6 billion barrels of oil per day. The barrel price of crude oil has risen 4 percent. Libya is a member of OPEC and the recent uprisings cause concerns for the fragile US economy. Economist Gerard Minak of Morgan Stanley states that for every dollar price increase in fuel reduces consumer spending by 120 million dollars.
The constant price increase of fuel and food is bad news for the American consumer and people who face bankruptcy. Facing the rising costs of necessities, numerous individuals must supplement their income. Often times making ends meet means using credit cards and loans. Interest rates on credit cards continue to increase making debt difficult to surmount without the aid of a bankruptcy lawyer.
The slow growth of the economy along with reduced customer spending not only sends people into bankruptcy but businesses as well. Businesses facing bankruptcy benefit from the expertise of a bankruptcy attorney. The prospect of higher fuel costs should be major concern for businesses as their operating expenses will rise and trickle down to the consumer. Raising prices can be a serious concern for a business that already struggles to bring in customers. Last week saw the demise of a major book retailer, Borders who saw a decline in their customer base. With a bankruptcy lawyer the business owner can work to keep their business.
