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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (199206)	8/31/2004 5:58:45 PM
From: tejek	Respond to of 1576007

Rising oil prices threaten to slow economy Stubborn surge recalls history of damaging energy shocksBy Martin Wolk Chief economics correspondent MSNBC ET Aug. 20, 2004 Last month Federal Reserve Chairman Alan Greenspan told Congress the economy was suffering from a surge in energy prices that he considered “transitory.” But with crude oil prices approaching $50 a barrel, many economists are beginning to worry this latest price spike might last longer than expected. At least one Wall Street forecaster is warning of a “shock” that could tip a vulnerable economy into recession. Most analysts disagree with that view but say the rising price of oil already is slowing global economic growth. The gloomy prognosticator is Stephen Roach, chief global economist of Morgan Stanley, who warned this week of the “mounting perils of another energy shock.” “Under the presumption that such prices stick near current levels, the outlook is worrisome, to say the least,” he wrote in a research note. “Just as the previous three oil price disturbances led to recession, there is good reason to fear a similar outcome in 2005.” Roach is known as one of the most pessimistic economists on Wall Street, but he is far from the only one worried about the implications of rising oil prices. “If these levels are sustained you can start marking down global growth in 2005,” said Joseph Quinlan, chief market strategist for Banc of America Capital Management. “Not dramatically, but still enough to knock some of the steam out of the synchronous global expansion. And with weaker growth come weaker earnings.” siliconinvestor.com