Oil Retreats on Signs Economy Hurting

[Zorra]

NEW YORK (Reuters) - Oil prices retreated sharply after setting record highs above $55 a barrel on Monday as dealers took profits on signs that energy costs are hurting economic growth.
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"As the odds of a full-blown oil shock rise, we have little choice other than to cut our global growth forecast," said Stephen Roach, chief economist at Morgan Stanley.
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On Friday, U.S. Federal Reserve (news - web sites) Chairman Alan Greenspan (news - web sites) said higher oil prices this year were the equivalent of a tax on Americans amounting to about 3/4 percent of the U.S. gross domestic product, and he warned of more serious negative consequences if prices moved "materially higher."
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"In terms of immediate impact, the economy certainly has been slower in 2004 than in 2003," Olson said, adding that the Fed was looking at both the immediate and long-term effects of rising oil costs.

http://story.news.yahoo.com/news?tmpl=story&cid=580&e=2&u=/nm/20041018/bs_nm/markets_oil_dc

[Cocoa]

1. clever strategy by Bush

trash the economy to keep those oil prices down. And we think he doesn't know what he's doing!

[Bandit]

2. higher oil prices this year were the equivalent of a tax on Americans

Bush* and his "Tax cuts"

[Tansy_Gold]

3. But I thought the Treas. Secy said oil prices would have to go

MUCH higher before they had any impact on the economy?

:eyes: