"Hurricane likely to have only modest impact on economy" BushCo econ advis

[Mairead]

WASHINGTON (Aug. 31) - 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 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 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.

Bernanke said the bond market's reaction to the hurricane, pushing market-set interest rates lower, showed more concern about the potential hit to growth than to the risk of a broad inflation surge due to soaring energy prices.

"I think that is a vote of confidence in the Federal Reserve," the former Fed governor said. "People are confident that inflation will be low despite these shocks to gasoline and oil prices."

http://aolsvc.news.aol.com/business/article.adp?id=20050831115209990016

[phantom power]

1. These people are a bad joke.

[Botany]

2. Sure we don't ship a huge % of grains from the midwest from .....

..... the Port of New Orleans.

Clueless

[Chipper Chat]

3. Stuart Varney said on Fox that it will have NO impact

on gas prices (this was 1 day before the hurricane hit). I couldnt believe my ears. Maximum bush propaganda. Fox---ughhhh!

[ThoughtCriminal]

4. SPR - haven't they been saying refineries are at capacity?

and releasing SRP supplies wouldn't help?

"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,"

Oh - they lied.

[TheFarseer]

8. That changes

depending on the argument they need to make. If they want to blame gas prices on liberals that won't allow refineries, then they are at capacity. If they want to destroy ANWR, then refineries are not at capacity. I don't know what is true. How could I?

[TheFarseer]

5. Deny there's a problem

This can't work forever. Christmas is going to be HORRIBLE and then the effect of gas prices will be clear to all. You can't call dog sh*t gold forever. Sooner or later someone is going to stand up and say, "hey, isn't that dog sh*t?" We need constructive answers right now, not yellow spray paint on dog sh*t.

[shadowknows69]

6. gas just went up like 80 cents in two days

modest impact? and the grand canyon is a modestly sized crack in the ground.

[txaslftist]

7. Those Iraqi ieds will only have a modest impact on your Humvee.

No need for armor there, sodjer boy.

[yorkiemommie1]

9. well, then we can get on with our lives....

Right ????


:sarcasm:

[BillZBubb]

10. And we invaded Iraq over WMDs...

Just like Iraq, they'll change this story once the economy starts to crumble. Then it will be ALL KATRINA's fault! Nothing the debt besotted, incompetent Repugs did, only Katrina!

And, the sheeple will buy it.

[Historic NY]

11. Its only modest...okay nothing to see here, move along......

its only a bad dream. :sarcasm:

[Roland99]

12. What a fucking idiot!

[Media_Lies_Daily]

13. Totally f'ing delusional.

[durablend]

14. Must be all singing Smufs songs (while toking it up)

LA LA LALA LA LA LA LALA LA LA

:puke: