Bernard Baumohl Quotations

There is a real sense of foreboding about the economy now that Katrina has struck with full force. This storm will be the most devastating ever for the U.S. oil and refining industries.

On the other hand, Greenspan seems satisfied that his tightening has had a lasting effect. He's likely to stand pat for the rest of the year.

There are signs that indicate economic strength might strain the economy, which would cause inflation.

Katrina has shaken the very foundations of the U.S. economic expansion when it ruined much of America's energy infrastructure, ... While a recession is unlikely, the probability of stagflation has greatly increased with inflation moving higher even as the economy slows.

People are going to be less inclined to drive to shopping centers. Instead, they're going to stay at home and if they carry on their usual holiday spending patterns then they will do it more likely online.

Our imports increase as long as the economy grows. But there's certainly a concern that our exports are down despite the fact that Asian and European economies have begun to rebound. Maintaining the high deficit is dangerous because that means a huge debt, and if our creditors lose confidence in the U.S. economy and begin selling dollars, which drives down the value of the currency, that could spark a serious inflation threat.

Our imports increase as long as the economy grows,

While the DOJ maintains long-standing, black-and-white parameters to seek out monopolies, the FCC tends to undertake a far more subjective and changeable analysis.

We have unmistakable signs that households are becoming more cautious about spending.

With borrowing costs on the rise and the wealth effect from real estate assets diminishing, something has to give.

With household finances already under considerable stress, one has to wonder if another round of rate hikes will lead to a more severe cutback in consumer spending.

When consumers are burdened with heavy debt loads, rising interest rates, higher energy costs, no personal savings and household income growth that falls below inflation, something had to give.

Bond traders are concerned that the economy may be growing too fast, given where we are in the business cycle.

The sharp pullback in economic growth during the final three months of 2005 shows the law of gravity has not been repealed. When consumers are burdened with heavy debt loads, rising interest rates, higher energy costs, no personal savings and household income growth that falls below inflation, something had to give. This retrenchment in spending was generally foreseen, though economists weren't sure on the timing and magnitude.

The stress on household finances in coming weeks will be the greatest since the last recession in 2001,

The tech industry is creating its own shakeout,

One has to wonder if another round of rate hikes will lead to a more severe cutback in consumer spending.

This is the latest sign that the economy is slowing down, and because these are labor numbers, they're going to have particular weight with the Fed. This is the kind of news that could take some of the uncertainty out of the markets and get stocks going up again.

It's fairly safe to say that the trade deficit may have peaked now that oil prices are falling and the U.S. economy is showing signs of slowing down.

If you take a snapshot of the economy right now, you could certainly say that we're in a sweet spot.

Housing prices in many communities will appreciate less rapidly --- and in some communities actually fall. This reduces the wealth effect from real estate assets, shrinks home equity borrowing, and increases pressure on households to replenish their savings.

The economy is generating plenty of jobs -- that's good news.

The current account deficit is a ticking time bomb. We don't know when it s going to explode, but it cannot continue the way the White House describes.

The central bank seems more worried than before that resources feeding the U.S. economic expansion are getting scarce.

A miscalculation in interest rate policy could damage the economy and force the Fed to reverse course later in the year by giving back one or two rate hikes.

The latest batch of economic news does not paint a very encouraging picture on the sustainability of consumer spending.