Adviser: Oil prices don't stunt economy

[sabra]

<<SNIP>>
http://www.mercurynews.com/mld/mercurynews/business/financial_markets/12162669.htm

Adviser: Oil prices don't stunt economy


WASHINGTON - High energy prices can put a strain on both families' and businesses' budgets, but so far they aren't seriously crimping overall economic activity, the president's top economist said Monday.

"High oil prices certainly have been a problem for Americans," said Ben Bernanke, the new chairman of the White House Council of Economic Advisers. "They are a burden on family budgets. They raise costs of production and reduce profits for firms."

Oil prices, which surged to a new closing high of $61.28 a barrel in early July, are hovering above $57 a barrel. Gasoline prices last week set a record of $2.33 a gallon nationwide.

"The higher oil prices so far have not depressed economic growth very substantially," Bernanke said. "I think that is a testament to the flexibility and adaptability of the U.S economy that it continues to grow despite this drag from energy prices."

<</SNIP>>

[louis-t]

1. Is everyone in this admin on drugs?

How low does your self-esteem have to be to parrot what some piece of paper or e-mail tells you to say every morning?

[phantom power]

5. It's only affecting families, not "the economy"

Translation: "Our stock portfolios are doing just fine, thanks. What other part of the economy were you worried about?"

[NeoConsSuck]

32. And job cuts only affect middle class slobs..

IBM recently laid off over 10,000 US workers, so they could hire cheaper labor in India and Eastern Europe. And their investors are now cheering the results of this brilliant business move:


IBM, one of the world's largest technology companies, reported much better than expected sales and profits for its second quarter, results that helped send IBM's stock up more than 4 percent in after-hours trading.


http://money.cnn.com/2005/07/18/technology/ibm_analysis/index.htm?cnn=yes

Cheney and Bush are probably having a toast to IBM right now. I guess the middle class slobs aren't in a celebrating mood.

[cornermouse]

2. Get ready for the oil prices to rise steeply.

Cause he's lying through his teeth.

[htuttle]

3. Was he sitting on a giant toadstool smoking from a hookah when he said it?

Nonsense. Absolute nonsense.

The 'economic growth' they are saying is 'not depressed very substantially' is mostly illusionary anyway.

[Rebellious Republican]

4. No, it just means companies are just cutting back more to keep those

stockholders profits up.
Will these people ever give up, enough with the lies already.

:banghead:

[BrainRants]

6. WH Council of Economic Advisors? Yeah, he's got fuckin' cred!

How retarded must one be to believe this much less make a public statement so incredibly asinine?

[napi21]

7. WHAT kind of a background does this "Economic Advisor" have?

I agree, the price of oil doesn't have a significant effect on the wealthy, but the economy depends almost totally on average Americans to buy stuff! The mmore it costs to get to the store, the less you can spend when there! That doesn't take the higher cost of goods in all catagories because of the increase in shipping costs!

[DefenseLawyer]

8. Of course not!

Everyone knows it is environmental red tape and taxes on the rich and affirmative action programs that are a drag on the economy. Geez, don't you listen to Rush?

[Vinca]

9. Of course this winter they'll be stacking Grandmas in piles

because they've frozen to death after having the heat turned off. If only they could appreciate that high oil prices make a difference to more than large motorhome owners.

[BrainRants]

11. Nice frame and visual!

Cuts right to the problem.

[VegasWolf]

10. Right! Increased transportation and manufacturing costs don't affect

the "economy" at all. What a fucking bunch of liars.

[RUMMYisFROSTED]

27. It cuts into the bottom line of every company that ships or receives

anything.

That covers just about everything except internet porn.

Brings new meaning to "Don't worry. Be happy!"

[mrdmk]

12. The Los Angeles Times posted something like this in their

Orange County edition in 1997. I think they lost something along the lines of 5% of their readership. This propaganda read like a story straight from any given Oil Company.

[Canuckistanian]

13. No, but pollution and CO2 controls do

:crazy:

[gratuitous]

14. Headline doesn't match the story

I know it's not sabra's fault, the headline for the story seems to declare an absolute (rising oil prices have no effect on the economy) and yet the story says basically that rising oil prices haven't affected the economy yet.

The water level's up to your lower lip? Well, then you can't possibly drown, can you? Unless the water rises another inch or two, then you're screwed. Meaningless nonsense encased in a "don't worry, be happy" kind of story. Compare and contrast with the hysterical reporting that surrounds, say, an isolated shark attack off the coast of Florida. Everyone on the Eastern Seaboard is supposed to panic then.

[Pooka Fey]

15. HAH ! Propaganda Media Agenda 101: SPEND YOUR $$$

"You are getting SLEEEPY. So sleeeepy. $2.60 a gallon gas is not causing you to cut back on your other spending. You will charge up purchases on your credit card. You will continue to spend $$$ just the same as 2 years ago when gas was $1.25 per gallon. Shop at Walmart. Spend your money. SPENDDDDDD !!!!"

[SpiralHawk]

16. "Drought doesn't stunt tree growth." - BushCo Ministry of Propaganda

eom

[Jackpine Radical]

34. Drought stimulates competition among trees,

causing superior trees to grow faster.

[barb162]

17. :Oil prices don't stunt economy" Y-E-T

I am not seeing stories yet on people dumping a lot of SUVs and other guzzlers

[Tempest]

18. The reason why is because U.S. manufacturing is almost non-existent

The manufacturing sector consumes the most oil, and there isn't much of the sector left.

[liberal N proud]

19. I don't know about you but, it sure the hell has stunted my economy

I would most likely be sitting at a decent restaurant right now eating a nice meal, giving someone earning minimum wage a tip for their service. But due to the cost of putting fuel in my automobile so I can get too and from work, I am at home, eating a sandwich.

What I have seen of restaurants in our area lately they have been hit, You can go out on Friday or Saturday night and walk right in and get a seat, if that is not stunted then I don't know.

[wallwriter]

21. Yeah, but Exxon Mobil has tens of billions in cash.

It's so much that even they don't know what to do with it.

So the economy must be OK.

[salminen]

20. I like higher oil prices

If you ask me, the price of oil should be closer to $200/barrel. We Americans have no sense whatsoever of the real cost that burning a barrel of oil has on the world, and high oil prices might be the only way we start to figure that out. Think of all the people that have already died in oil conflicts, all the people killed by global warming-related hurricanes, etc. And this is just the beginning.

On top of that, the stuff is about to run out. Sooner or later, we are going to need to absorb the economic impact of the end of oil. If high prices force us to take that hit a little bit at a time, while we can still do something about it, instead of all at once, when it's too late, I'm all for it.

Obviously, I'd prefer that the money go to researching alternative energy instead of lining the pockets of bushco and the saudis, but still, high oil prices aren't all bad.

[barb162]

23. yeah, I think it will have to be in the 4-6 buck range before a lot of

people in this country get a reality check. I watch the guzzler crowd cripe about the gas price and it never seems to occur to them to get a fuel efficient vehicle. Maybe when they have to pay 100-150 bucks to fill their pig gas tanks, something will click in their brains.

[UpInArms]

22. I do so hope that this speech is broadcast

on every MSM there is -

That way the rest of the country can see just how disconnected from reality all these hacks truly are.

[Media_Lies_Daily]

24. Bernanke = complete raving lunatic with absolutely no grasp on reality.

[Chicago Democrat]

25. Hey Saddam's press guy must have found a job!

Offcr Barbrady: Move along people! nothing to see here!

[The_Casual_Observer]

26. It is hard to "stunt" the economy with interest rates kept

so low artificially. Too bad this can't be done forever.

[Name removed]

28. Deleted message

Message removed by moderator. Click here to review the message board rules.

[fasttense]

29. Since everything from the DJIA to the FTSE 100 is down today,

I would keep my Mercury News editorial mouth shut.

But they are just repeating the repukes talking points because energy and food are no longer included in the inflation numbers so I guess eating and moving aren't important to the economy.

How did stocks in Germany do during Hitler's reign of terror???

[Porcupine]

36. That's Energy, Food and Housing are not inflationary.

See if you are very, very, wealthy costs like energy, food and housing pale in comparison to your entertainment, travel, public relations, "personal staff" (Gannon) and entourage costs.

So therefore they are not inflationary. Let them eat cake (past sale date handed out at homeless shelters near you.)

[cliss]

30. If oil prices don't stunt the economy,

then why does Wall Street recoil every time the price of oil notches upward?

I'd like to ask this "Economist" just that question.

Cliss: Mr. Bernanke, why does the stock market go down every time oil prices jump? Isn't that a clear sign that investors are worried about companies' bottom line, and their ability to survive?

Bernanke: (looks confused, has to stop for a moment and think)Why.....that's a sign that......(not sure if he should criticize Wall Street)...Wall Street typicall reacts abruptly on any news, good or bad, it's a way of stabilizing the market.....it's all a good sign....flexibility....economy,on the way up for sure now....bla bla

[Mr_Spock]

31. Black is White!! Red is Blue!! We are dumb and so are you!!

What the everlovin' fuck is wrong with these idiots! :smoke:

[applegrove]

33. Not while there is so much underemployment. No - as long as

jobs are outsourced and illegals hired...Oil price rises will not make people with investments cringe.

[anotherdrew]

35. So it would have been OK then to slap a 100% tax on oil 5 years ago?

Since the extra cost isn't harming the economy too much and that money would have come back in the form of universal healthcare, which would have lowered a lot of peoples and firms costs since they would not then have had to pay for private insurance.

Can you imagine what the repugs would have said about raising the cost of oil to even near this level via a tax?

[mrdmk]

37. And do what, put the Insurance Industry out of business?

Oh, I forgot, that would also mean that the Pharmaceutical Industry would also have to make its own way in the world. God forbid!

[anotherdrew]

42. for national security, the US must nationalize all oil import/processing

do the work for cost, it'll be better in the long run or everyone. Same with health-care and pharms. Remember, companies don't invent drugs, people do, and people can work for a government run public benefit corporation as well as a privately held one.

[daleo]

38. If rising prices put a crimp on family and business budgets

Eventually they have to "put a crimp" on the economy. I mean, what else is the economy?

[Miss Chybil]

39. In other words... "Keep squeezing them. They got a way to go before they

break, Mr. President. You and your buddies can continue to make record profits. Woo hoo!"

:woohoo:

[rman]

40. It is becoming increasingly clear that "economy" simply means

"the rich getting richer".

[StrafingMoose]

41. Sure..

Let's see what happens with a 150$ barrel.

[jsamuel]

43. They sure have stunted mine...

money for movie tickets now go to gas

soon my water bill and electricity bill will go to gas too

can't work if you can't get to it