Tags: U.S. | Productivity | Slowdown | Sends | Inflationary | Shiver

U.S. Productivity Slowdown Sends Inflationary Shiver

Saturday, 10 September 2005 12:00 AM

Wilkinson's Edge
The Cutting Edge of Financial Analysis

Dear MoneyNews Reader,

This week marked the first appropriate time to monitor reaction to Hurricane Katrina.

I'm talking about solid and real-life facts – not panic or speculation.

In the wake of the disaster gold jumped, the dollar swooned, stocks slid and bonds rose, all indicating that this natural disaster might bring the United States – if not the entire global economy - to its knees.

I've been especially interested in hearing the government's response and examining the official data in the aftermath. So far, my baseline conclusion is gaining traction as I monitor a variety of asset classes.

The economy prior to Katrina was doing just fine.

Now the next few months will be messy, but there is optimism for the long-term picture as the government relief effort – which will run into billions of dollars – will spur growth in the region for years to come.

Let's take a look at some stories that have helped us understand this week's market action.

First up, bonds and interest rate markets shrank back into a hole after having jumped higher in the wake of the Hurricane.

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Wilkinson's EdgeThe Cutting Edge of Financial Analysis Dear MoneyNews Reader, This week marked the first appropriate time to monitor reaction to Hurricane Katrina. I'm talking about solid and real-life facts - not panic or speculation. In the wake of the disaster gold...
U.S.,Productivity,Slowdown,Sends,Inflationary,Shiver
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2005-00-10
Saturday, 10 September 2005 12:00 AM
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