Survey: Economy Expanding Well Before Storm (MAJOR SPINNER!)

[Career Prole]

WASHINGTON - Factories were chugging, cash registers were busy and jobs were growing in the late summer — fresh proof that the economy was in fine fettle before Hurricane Katrina slammed into the Gulf Coast, spreading death and destruction.

After that headline and that first paragraph come seven paragraphs relating how the economy will now suck.

Then they finally say what constitutes "fine fettle" to them...

Before the storm, "except for energy, overall consumer price increases were modest," over the last two months, according to the Fed's survey.

The Fed also found that manufacturing activity increased in most of the Fed's 12 regional districts, retail sales and tourism activity strengthened in most regions and the jobs climate improved — all before Katrina hit.

The rest of the article warns of the housing bubble going pop...not because of Katrina, mind you, but because that's what all bubbles do.

I've got to say...and I don't think I'm speaking for myself here...that what they point out as healthily chugging economic indicators in that second excerpt have been at best lackluster.

There you have it folks.

Bush blamed his miserable first term economic performance on 9/11, and Katrina will be the catch-all for his economic failures in his second term.

Link here: http://tinyurl.com/a7z5u

[Ready4Change]

1. Economy was a turd covered by a pretty sheet before.

Katrina has pulled away the sheet.

All imo, of course.

[neuvocat]

2. Great rhyme.

Also very true. This is just an excuse to say that Bush would have gotten the economy going if it weren't for that doggone hurricane, don't cha know.

[UpInArms]

3. HUH? Related: Mervyns Closing 62 Stores in 8 States

http://www.washingtonpost.com/wp-dyn/content/article/2005/09/07/AR2005090701370.html

SAN FRANCISCO -- Long-struggling retailer Mervyns LLC plans to close nearly a quarter of its stores and lay off 4,800 employees in an attempt to cut the chain's losses.

The Hayward, Calif.-based company said Wednesday it will close 62 stores in eight states, with the bulk of the cutbacks concentrated in Texas and Michigan. The streamlining also will close stores in Oklahoma, Colorado, Louisiana, California, Oregon and Utah, as well as two distribution centers in Texas and Utah. The closures will be completed by February.

All the affected stores, which generated just 17 percent of Mervyns' sales, were losing money, Mervyns said.

<snip>

About 1,200 full-time employees and 3,600 part-time workers will be laid off because of the closures, the company said.

<snip>

In Texas, Mervyns will close 28 of its 40 stores. The purge also will close: 15 stores in Michigan; 10 in Colorado; three in Oklahoma; three in Louisiana; and one each in Utah, Oregon and California.

...more...

[gatorboy]

4. I coulda sworn a few weeks ago

that it was high gas prices that was affecting the economy. :shrug:

[gatorboy]

5. Hey wait...It was high gas prices!

http://www.usatoday.com/money/industries/energy/2005-08-16-gas-prices-usat_x.htm

Economy sputters as gas keeps rising

Gasoline prices marched higher Tuesday, pushing AAA's national average past $2.50 for the first time, while experts are split in their predictions about when they might recede.
The impact from soaring gas and diesel fuel prices reverberated through the economy:

• The Labor Department reported that the consumer price index rose 0.5% in July. A 6.1% increase in oil-based energy costs accounted for half of the increase.

• Wal-Mart said high gas prices are deterring shoppers. "Our customer continues to be impacted by higher gas prices, and it is difficult to improve our expense leverage in the current environment," CEO Lee Scott said in a note to investors.

---------------------------------------------------------

Oh, how soon they forget. :eyes:

[strizi64]

6. It's all Clintons fault!

:popcorn: :sarcasm: