I just read this article regarding a speech that Jane Yolen, President of the San Francisco Federal Reserve Bank gave about how the economy is doing "reasonably well" despite Katrina and Rita. In the article, Yolen says "the economy overall, in my estimation, is doing reasonably well and could settle into a highly desirable pattern of full employment." I know my blog is called nonsense, but what this women is saying is total nonsense.
I'd love to say that the economy is doing well and we are all going to be happy and have great jobs and loads of cash, but I can't believe this drivel. I spent a good amount of time working in retail and I know how badly things can turn for a retail store in a short amount of time.
Allow me to suggest a far more pessimistic scenario for the upcoming months. I pray that it doesn't come true. Oil prices will continue to rise, or stay at the same price, either way being bad for the people. With oil prices up, shipping costs more and thus, retail products will cost much more. People will stop buying unnecessary things because they don't have the money for them. Retail stores close, leaving many unemployed.
The rise of gas prices force people to cut down on luxury items and causes the United States to have one of the worst holiday seasons in recent years. Bigger retail stores post major losses and unemployment continues. Auto dealerships find SUVs collecting cobwebs, causing many to go out of business.
The economy is already weak because of the way President Bush has managed to manipulate it to give his friends tons of money. His notion that tax cuts will continue while we pour billions into the Gulf Coast is ridiculous and potentially harmful. I just pray that many don't freeze with the oncoming rise of oil prices over the winter.
Now here's a picture to ease the pain: