Storm economic impact seen modest-WHouse (Reuters)

[Up2Late]

("...reconstruction is going to add jobs and growth to the economy...," Yeah, to Mexico's economy! These guys haven't got a Clue.)

Storm economic impact seen modest-WHouse

Wed Aug 31, 2005 12:05 PM ET

WASHINGTON (Reuters) - Hurricane Katrina is likely to have only a modest impact on the U.S. economy as long as the hit to the energy sector proves transitory, White House economic adviser Ben Bernanke said on Wednesday. "Clearly, it's going to affect the Gulf Coast economy quite a bit," Bernanke told CNBC television. "That's going to be enough to have at least a noticeable or at least some impact on the aggregate (national) data.

"Looking forward ... reconstruction is going to add jobs and growth to the economy," he added. "As long as we find that the energy impact is only temporary and there's not permanent damage to the infrastructure, my guess is that the effects on the overall economy will be fairly modest." He added that most indications suggested the effect on the energy sector would indeed be temporary.

Bernanke, chairman of President George W. Bush's Council of Economic Advisers, said the administration's decision to release oil from emergency stockpiles should be helpful. "There are some petroleum refineries that don't have crude and by allowing them to draw from the Strategic Petroleum Reserve they will be able to produce more gasoline," he said.

<http://go.reuters.com/newsArticle.jhtml?type=politicsNews&storyID=9523359&src=rss/politicsNews>
(more at link above)

[Endangered Specie]

1. They have an obsession with seeing things destroyed

only so they can 'hire' some friends to build it up again...

[Demeter]

2. How Fortunate Timing!

All the inhabitants still have 'til October to file for bankruptcy!

Don't say there's never a silver lining.

[marmar]

3. That's foolishly wishful thinking...

Louisiana and Mississippi are going to have Third World economies for a bit (10 percent of state revenues in Miss. came from the Gulf casinos). The collective impact on insurers and national companies is going to affect us all. And if gas prices stay at $3 a gallon for a while, heaven help us all!

[Karenina]

4. These "pronouncements" are irresponsible

as the hurricane season is NOT yet over.

[Don Claybrook]

5. Time to do a little bit of math

How many brand-new unemployed people are in the New Orleans, Mississippi region? 1 million? 1.5 million? How much revenue did these people generate on a daily basis, revenue that no longer exists?

Do they really believe that reconstruction will overtake all of the commerce the entire region used to conduct? Do they really believe that reconstruction will not only make up for the loss but also 'grow the economy'?

Please just put the mayor in charge of the whole thing. So far, when I've seen the mayor speak, I haven't gotten the distinct impression that he's lying through his teeth. I cannot say the same for any federal official.

[UpInArms]

13. but those people aren't "unemployed"

they will create an entire new category for them - let's call it "displaced", since they were not properly "severed" from their employment.

Bernanke is a hack and one of the worst of the worst.

[sybylla]

6. Modest is what they said when gas hit $2/gallon

:rant: WARNING

I can predict this shit better than they can and I don't even have an alphabet soup after my name.

I'll say it here and now - gas hits $4/gallon and our economy is crashing into the ground like an effing dart. It will gobble up every spare dollar in every pocket of every American household making less than $50,000. Christmas spending will be slashed. Major purchases will be put on hold. Monthly expenses will be cut. All to feed the giant, insatiable pig of an oil industry.

I know it's all gloom and doom. But long before Katrina arrived (since November 2, 2004), I've felt a terribly pernicious dread for our economic future. This administration will do nothing to prevent a collapse, because it's wealthy patrons and friends will float on their reserves above the fray and likely make bazillions off of it, returning some of it to said political party, continuing the cycle of fucking up this country.

/:rant:

[cmdrxog]

11. long before Katrina is the key

This economic disaster has been coming a long time and Katrina will be used as smoke & mirrors to divert the real blame. The true tragedy is that so few are able to see what is being done to them.

[sybylla]

18. Welcome to DU, Commander

:patriot:

and you are right - this has been a long time coming, but the maladministration will use Katrina as an excuse and likely get away with it.

[cmdrxog]

28. thanks sybylla, glad to be here. nt.

[Judi Lynn]

7. Other views(!): Katrina expected to disrupt national economy

Katrina expected to disrupt national economy

By Jeannine Aversa
ASSOCIATED PRESS

1:32 p.m. August 31, 2005

WASHINGTON – Surging energy prices and business disruptions from Hurricane Katrina, likely the costliest natural disaster in U.S. history, threaten to slow what has been a steadily expanding economy.
The powerful and deadly storm devastated much of the Gulf Coast area in the South, knocking out oil refineries, shuttering businesses and crippling the flow of commerce through ravaged ports.

While the damage has yet to be fully assessed, economists and other experts believe the disaster will rack up insured losses of up to $25 billion. That would surpass the $21 billion (in inflation-adjusted losses) stemming from Hurricane Andrew in 1992, analysts said.

"This will be one of the – if not the – biggest single event in terms of insured losses in U.S. history," said Julie Rochman, spokeswoman at the American Insurance Association.
(snip)

"It is certainly going to disrupt commerce and cause problems for companies involved in exporting products such as grain, poultry and forest products and cause problems for importers of goods such as oil, bananas and other cargo," said Joseph Bonney, editor of The Journal of Commerce, a weekly that covers international trade.
(snip/...)

http://www.signonsandiego.com/news/business/20050831-1332-katrina-economy.html

[Mari333]

8. economist says same thing!

http://www.economist.com/agenda/displayStory.cfm?story_id=4339099

[DiverDave]

9. I saw 3.01 per gallon in Wash. D.C.

Yeah, no impact...fucking corperate enabler bastard.

[DELUSIONAL]

10. Someone yesterday predicted that the bushie gang would say

these words -- almost word for word!



"Looking forward ... reconstruction is going to add jobs and growth to the economy,"


These fuckers are so predictable.

[Jacobin]

12. And Iraqis will welcome us as liberators

YOur check is in the mail and I didn't know that was your wife

[anotherdrew]

14. a city is underwater george - you simpering ass - someone slap this dick

what an ignorant jackass, it truly boggles the mind.

[Bonhomme Richard]

15. WH Says. Now I know we are fucked.

[GoddessOfGuinness]

16. Great...More work for illegal aliens

That's just the boost this economy needs.

[MissMarple]

17. You know,if I was a southerner,I would be just a tad irritated with George

I would be wondering about the slow to foot dragging federal response to a disaster that has crippled the region. He shows a distinct lack of concern for the depredations that have been visited on this particular corner of the country. Could this be an example of racial, regional, or just pure old class prejudice? Or maybe he and his administration just really don't care much about anyone that doesn't directly promote their own self interest.

If I was a southerner, I really would be pondering on that.

[Prodemsouth]

27. It didn't take Katrina to piss this southerner off- we are talking day

one here. but I can't speak for others- southerners - esp white southern men have a problem admitting they were wrong, damn near everyone of them voted for the monkey.

[MissMarple]

31. But if they do... they will be quite...umm...ticked off.

I'm just guessing. :)

[muwriter]

19. Gah, moronic hurricane boiler plate comments.

First time poster, long time lurker.

I'm sorry, but having two whole states pretty much knocked out of the functional GDP is going to have a national impact. Those fuel prices are also going to choke freight, travel, and airlines something fierce.

Recession in 2006

[natrat]

20. 25% of our oil comes through port of NO

93% gulf of mexico platforms closed/broken
come on , this is going to require sacrafice

[teryang]

21. Pushing the phony economy over the cliff

This could do it.

[IDemo]

22. Another thread on this:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=104x4517520

[ninkasi]

23. It's time...past time...

to roll back those tax cuts for the wealthy. The regular citizens of this country have been beat up enough by conservatives. Enough. With all of the problems we are now facing, added to the monumental problems we faced before, it's time for the ones who have benefited so richly from having this idiot in office to give back something to the rest of us.

We have sacrificed jobs to overseas, children to death and maiming in Iraq; we have had our rights taken away, we have been smeared as unpatriotic, and we have watched as energy costs reach the stratosphere. We have been lied to, had our votes stolen, and been betrayed by the media, who should have done some investigative work, instead of whoring for the neocons.We have watched as our schools become quasi fundie places of propaganda, replacing science with fairy tales.

Now, we have no more to give. Rolling back the wealthy's tax breaks will not hurt them, not in the way we have been hurt. It might go a long way to mitigate the pain and sacrifice that they will surely burden us with, in restoring some semblance of stability to all those devastated by Katrina.

Oh, and one more thing. It's time to impeach the whole administration, and charge them with crimes against humanity.

[Porcupine]

33. and take away their stupid golf clubs!!! So There!!

.

[MnFats]

24. don't forget to add the eye of newt and toad skin....

...what kind of whacky bullshit is that?

[MiniMe]

25. Wow, they have the ultimate pair of rose colored glasses

Unbelievable. Do they not even realize how many millions of people were just added to the Welfare system and to the unemployment rolls?

[progressive_realist]

26. Phbbbbtt! Bernanke is nothing but a Pollyanna.

His sole claim to fame is that he will only say things flattering to the government, his employer. He knows which side of his bread is buttered. :eyes:

I wouldn't pay the least bit of attention to anything this guy says.:dunce:

[The_Casual_Observer]

29. Sure, major cities are lost all the time. Take it in your stride!

[mom cat]

30. You know our George...always looking for the bright side...

especially if it means more contracts for his buddies. We have got to watch the reconstruction contracts. Hint..Halliburton, anyone involved in "rebuilding Iraq, Bechtel...now famous for the leakiest tunnel in the world (Big Dig in Boston) or anyone on the top contributors list to dim son.

[Neshanic]

32. Bernake relation to Neville Chamberlain in any way?

[applegrove]

34. It's all about that roaring market. Nothing else matters.