virtually all of the spare capacity is in saudi arabia, and oil is priced at the margin. a shortfall in supply can load to a huge change in demand. for every $10 per barrel, we re talking about 25 cents or more per pump. gas prices already up 50 cents year over year, it could be up pretty substantial. what does that do to our economy, jim cramer, as we re trying to move out of a recession. what does $4 a gallon prices do to the american economy? i will tell you what happened in 2008, when we crossed the $4 barrier. there s a dramatic decline in much of travel, in going out and retail sales. these have been spectacularly rebounding in the last six months. so certainly a lot of times americans will look at pictures and how will this impact me? and people are getting dumbed