Will oil spill disrupt the (national) economic recovery?

[lchoro]

Most expect the economy to slow and possibly go into recession regardless of the oil spill.

The fiscal stimulus has already peaked. It should be completely gone by H1 2011.

Also, the unemployment benefits expire for several million over the next several months.

Once TARP authority expires at the end of September, banks will start to act on moving out their foreclosure inventory which has swelled because of the moratorium. BAC has already stated that they expect to process 5 times as many homes. A lot of consumers will have to start paying rent.

Both the Bush and Obama tax cuts are also up for expiration by the end of the year.

[texdav]

I thnik to the econonmy it will have a effect. But there is also the efect of stoppig drilling. those comapnies ownign and operating the rigs will go to other locations where they want rigs . Brizil quickly started talks with thsoe companies about moving many of the rigs halted in the drillign stoppage.If we prodcue less crude then we will be shipping money out of teh country to pay fpor our energy needs.That money like anyhting else si spread thru a econmy pretty widely in the end.

[StealthRabbit]

Originally Posted by killer2021

...For a business, they will do whatever makes sense for their bottom line.

Right now, it makes sense to NOT hire any americans. Simply put, people in other countries are more competitive and provide better value compared to americans. ... Want the jobs to come back to the USA? Cut regulations and lower taxes. The USA will NEVER have a recovery so long as other places are better places of doing business. Just look @ singapore and Hong Kong. Look what they are doing. How many taxes do businesses pay in Hong Kong? 16.5%. How about Singapore? 17%. How about for the USA? 15-39% + possible state taxes. How about dubai? 0% (also 0% income tax)

... Its a recipe for disaster.

AND the foreign governments (especially strategist, like Singapore and China) are watching our (USA) disaster brewing and are planning their next move to capture more US market share, resources, and markets where the USA HAS been profitable and dominant.

Originally Posted by cdelena

Yes, it will have an impact but is just one of many things hampering an economic recovery.

• Government regulations and expansion,
• serious debt problems here and overseas,
• worldwide currency concerns,
• factors that have moved resources and production to Asia

all combine to insure we will not see a typical recovery.

Until we make changes to restore commerce, competitiveness, and confidence to this economy we will continue to struggle.

Oh how painful to watch our ineptness at doing these critical 3 "c's"

Originally Posted by lchoro

Most expect the economy to slow and possibly go into recession regardless of the oil spill....Both the Bush and Obama tax cuts are also up for expiration by the end of the year.

Ouch, don't remind me that whoever is 'minding-the-store' is out to lunch Why, oh why is not someone dealing with these tax issues!! (hint:, they all think WE need the tax money BUT, they are killing the Golden Goose...Taking more money is sure not the same as growing more money through effective business strategies.)

JMHO, the oil spill is a significant glitch in US economy and is yet another distraction to getting an effective recovery plan in motion. (not that our leadership is capable of knowing, formulating or implementing a plan). It was pathetic to witness the untimely public grilling of BP by our nation's finest morons (while those execs AND their support staffs should have been dealing with their MOST IMPORTANT matter, not some cheesy inquisition / chastisement)

All the posters have brought up good and interesting points. I do fear that this accident is being used to propel agenda's that will have disastrous economic consequences the the USA.

I actually think our (USA) response to the accident is and will have a significantly stronger detrimental effect on how we are perceived as a
competitive, confident, and capable business ally with whom other countries DESIRE to do commerce,

RE: the accident, There were certainly some significant snafus by BP, Haliburton, & US inspectors. But our childish 'fist-pounding' response and lack of focus to cooperatively SOLVE the problem is gonna bite us BIG TIME, economically and leadership wise.

Lose - lose situation UNLESS someone capable and confident takes the reins.
(and does something)

[Chango]

Originally Posted by lchoro

Most expect the economy to slow and possibly go into recession regardless of the oil spill.

The fiscal stimulus has already peaked. It should be completely gone by H1 2011.

Also, the unemployment benefits expire for several million over the next several months.

Once TARP authority expires at the end of September, banks will start to act on moving out their foreclosure inventory which has swelled because of the moratorium. BAC has already stated that they expect to process 5 times as many homes. A lot of consumers will have to start paying rent.

Both the Bush and Obama tax cuts are also up for expiration by the end of the year.

I second your depressing take on the situation. Time to go down the second rollercoaster hill.