Interesting factoid here from David Rosenberg’s latest. As he has been quick to note in recent months the high price of oil is an increasing burden on household’s and the current levels are highly unusual. Rosenberg notes:
Below we show the ratio of WTI to the core CPI, which recently crossed the 40x threshold for just the third time in history. As you can see, it only took a break of 20x to bring on the recessions of 1973-75, 1990-91, and 2001. A breach of the 40x level occurred in November 1979 and October 2007 (recession began two months later, both times).
Source: Gluskin Sheff