NYT: Numbers Show Economic Lag Before Storm

[UpInArms]

http://www.nytimes.com/2005/09/15/business/15econ.html

WASHINGTON, Sept. 14 (AP) - Hurricane Katrina is eating into the economy, leading to concern that consumers will lose confidence and curtail spending.

The government reported Wednesday that retail sales fell 2.1 percent in August, even before the storm hit, as high gasoline prices jolted consumers.

Also, industrial output was nearly flat, reflecting widespread shutdowns of oil platforms, refineries and chemical plants along the battered Gulf Coast.

Analysts said they still believed that Katrina would amount to only a temporary blow to the economy and that strong growth would follow as rebuilding begins.

The decline in retail sales was twice the size economists had forecast.

<snip>

Without the jump in spending at gas stations, retail sales would have fallen by 2.8 percent last month as demand faltered in many sectors, the government estimated.

...more...

[Erika]

1. Our water and energy bills increased & our property taxes.

They keep going up and up. The wages don't. Katrina had nothing to do with that.

[firefox]

2. I wonder about property insurance

We already know about medical insurance being outrageous, that is if you are well enough to qualify.

[Erika]

3. Our Homeowners insurance increased by 12% this year

[Kolesar]

5. Cancel insurance you don't need like automobile collision

Insurance on "everything" is going to go up in price, just like after 9/11. My car dropped below $8000 in value, so I cancelled collision. If you don't have the nerve to do that, you could just raise your deductible.

[4dsc]

7. I just got new coverage for home and auto

and I saved about $300 over my current plan.. then I refinanced my car loan and saved 2% points.. Yesterday was a good day!!

[Kolesar]

8. Yes. It is worth shopping around

My Nationwide Auto policy was not that expensive, but I dropped collision anyway.

[cliss]

4. This is truly -

the lull before the storm. Brace yourselves, everyone, because we're going on a Wild Ride starting this fall. I believe prices were set to go up, anyway. But Katrina dealt the death blow to any kind of recovery here in the U.S.

Our economy is desperately dependent on cheap oil to survive. Notice I say cheap oil. Once it becomes expensive, our economy tanks.

People who can be frugal and pinch pennies will ride out this storm.

[Demeter]

6. Yeah. About 5 Years Before The Storm

get with it people! This isn't Clinton's America. When $7 TRILLION in assets vanishes into fraud, the economy is going to suffer for a long, long while.