US economy may face bigger risks due to oil, Mideast unrest (AFP)

[Up2Late]

US economy may face bigger risks due to oil, Mideast unrest

16/07/2006 17h17

WASHINGTON (AFP) - The upsurge in Middle East violence and resulting spike in crude oil prices poses new risks to the US economy, which is already cooling from higher interest rates and other factors, experts say.

With concerns rising about an expansion of the conflict now involving Israel and Lebanese-based Hezbollah, oil prices have hit fresh peaks, increasing a variety of costs at a time when many analysts have been calling for a "soft landing...."

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..."Given the unnerving developments in the Middle East, the prospects for 80-dollar oil and record gasoline prices, a clearly deteriorating job market in the US and the steady erosion in the stock market, it stands to reason that households will be much more cautious about spending in the future," said Bernard Baumohl, executive director of the Economic Outlook Group.

The US has suddenly become vulnerable to a much more serious downturn in the second half of the year. Could geopolitical events suddenly turn a soft landing into a recession? Absolutely...."

(more at link) <http://www.afp.com/english/news/stories/060716155240.8g1z8ogh.html>

[Laughing Mirror]

1. Bigger risk ... you mean like a collapse?

Will high oil prices finally drive the nail in the coffin of the corrupt evil empire?

[VegasWolf]

2. "cooling" economy my ass, "collasping" is more apt. nt

[Pathwalker]

3. Yep, right on schedule. Welcome to Armegeddon,

the first days. We're THERE, folks, and now is the time to take whatever safety measures for you and yours that you can. There's no time to waste, now.

[watrwefitinfor]

5. "Safety measures" - Would you make some specific suggestions? n/t

[VegasWolf]

6. I already have! nt

[chill_wind]

4. "You're doing a helluva job",..neo-crazies! n/t

[Ezlivin]

7. Is Bush about to hit another trifecta?

Now he'll be able to blame a faltering economy and rising gas prices on ME problems that he "inherited."

Soon we'll see him smirking and joshing about the problems in Israel. The fucker can never keep a straight face when others are dying.

[bemildred]

8. Are the guys that write this crap all on valium drips? nt

[samsingh]

9. the markets are going to be wild tomorrow

[Up2Late]

10. kick n/t

:kick: