[Leanan]

$this->bbcode_second_pass_quote('', 'W')ASHINGTON - The economy grew at only a 1.1 percent annual in the fourth quarter of last year, the slowest pace in three years, amid belt-tightening by consumers facing spiraling energy costs.

[lsu2001]

I have been a lurker here lately but I noticed this article on Foxnews.com and thought it would be relevant. I understand that this is a short term measurement and that the price spike of fuel after Katrina had some effect but to me it shows just how closely the economy is tied to fuel prices.
Tim

Link:
http://www.foxnews.com/story/0,2933,182963,00.html

[jato]

...and the DOW and NASDAQ are up over %1...whoo hoo!

[backstop]

No sign of the predicted post-Katrina bounce then ?

Its been five months or so, so I'm wondering if it was just hype to prop up the Dow ?

And if so, then how much will the loss of Gulf-coast business and jobs will take out of this year's 'growth' ?

Extrapolated forward, the US would formally be in recession (2 full quarters of decline) by the autumn, but how likely is such an outcome ?

regards,

Backstop

[lsu2001]

More wonderful news

http://moneycentral.msn.com/content/Exp ... ak.asp?msn

[Aqua]

http://www.financialsense.com/Market/da ... nesday.htm


Here is an amazing graph from the financialsense website. Scroll half way down the page and look at the bar chart for reported growth versus growth with mortgage equity withdrawal taken out. Without MEW GDP in the US only amounts to 1% in 2004 and an even more paltry .2 -.25% for 2005, GDP like most economists reports these days is all smoke and mirrors. When the housing bubble deflates its going to take the whole economy down with it if these figures are correct.

[strider3700]

$this->bbcode_second_pass_quote('backstop', 'N')o sign of the predicted post-Katrina bounce then ?

Its been five months or so, so I'm wondering if it was just hype to prop up the Dow ?

[shortonoil]

$this->bbcode_second_pass_quote('', 'E')ither way I can't see rebuilding that town as being anywhere near economy building enough to cover the hit the high energy prices made.

[Falconoffury]

New Orleans is sinking in part because of all the oil that held the city up has been pumped out over the years.

[Leanan]

Consumer spending surges in December

But they did it by dipping into savings:

$this->bbcode_second_pass_quote('', 'C')onsumer spending rose at a rapid pace in December, far outpacing income growth, a development that helped to push the savings' rate for the year down to the lowest level since the Great Depression.