Trends and Issues in Extension

Don Iannone has post with some scenarios from Global Insight that summarizes some possible outcomes for the economy after Hurricane Katrina. Best case: $3.00 gas for a few months, then down to $2.50 with a drag on the economy. There are still unknowns in the damage done to the oil industry infrastructure in the Gulf, so the scenarios could be worse. It is very likely that the damage estimates (and related costs) will only increase as more information comes out.