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Is It Possible the Current Recession Was Caused by Oil Prices, Not Housing?

[I somewhat agree with Stormcat. If our society was so highly leveraged that higher oil prices triggered the meltdown, that is really scary.]

Then you know very little about the average American household. The typical American has little-to-nothing in reserves. Most households could not withstand more than two missed paychecks.

The payment shock at the pump put a number of households over the tipping point. And, it scared the crap out of many others. Reduced consumer confidence triggered reduced driving as well as decreased consumption, which further exacerbated mortgage defaults.