It is refreshing that there are some here that understand economics and distribution logistics. One other piece that need to be considered, is that tankers bearing crude may have to be delected from docking. This whole enterprise is going to have major effects on our economy.
Fortunately for me (from a totally selfish perspective) my wife and I are retired. We only book 10k miles a year on our cars. So, fuel prices are insignificant. HOWEVER, the cost of goods and services will increase. Ergo, no one is totally insulated from the effects of these storms.
MAYBE the libs will allow the ptro companies to drill and refine. And, MAYBE the libs will allow building nuke facilities.
If you live in a northernly state, expect to see BIG, and I mean REALLY BIG increases in heating your home, especially if you use gas or heating oil.
As for goods like clothes and food, that will be more difficlt to determine. What is currently happening is that people are spending LESS money at the stores, and they are beginning to believe that the fourth quarter is going to be the pits for retail. Hence the prices of goods will probably go down, as stores get stuck with inventories that need to be moved. This will also mean that companies will have to take a hit on their profit margins, rather than charge more do to transportation costs, resulting in lower net earnings for a lot of companies.
But the lower prices will not be a good thing, as lower margins will nescitate companies looking to contain costs, which usually usually means lay-offs, stagnent or decreasing wages, and greater unemployment.
If we are not careful, this could bring us into a sharp downturn economically speaking. I'm expecting a recession in 2006 at the very least, and perhaps even the first ever depression since the 1930's.
The Federal Reserve showed it's true ignorance by raising it's rates by another quarter point today. The last thing we need right now is a tighter money supply. The market showed it's dissatisfaction by losing over 100 points.
A lot of things are lining up for dire economic times ahead...
It may end up hitting LA straight on before it's over....
Well, the markets aren't as concernced about Rita as they were yesterday, so I hoping for the best! Still wounldn't want to be her path though...