Wednesday, August 31, 2005

"America will be a stronger place for it"?

In his speech today, Bush claimed that "America will be a stronger place for it" (i.e., because of Hurricane Katrina), he showed the callousness and disconnectedness that has catagorized his response (or lack thereof) to Hurricane Katrina. There is nothing that will come of the Hurricane that will strengthen the country. The only people in America who will benefit are the oil companies. Bush's delay in releasing oil loans from the Strategic Petroleum Reserve benefited the oil companies. As an article in today's Financial Times noted "The output disruption has swelled refiner margins for petrol production to more than $20 a barrel, a far cry from the 1990s when refiners were incurring losses for each barrel of petrol produced". This is caused by the increases in oil costs from the War in Iraq and the Hurricane. The companies' losses from the storm in terms of equiptment will be re-couped by the insurance companies or the federal government. They are the only true winners from the storm. Everyone else will be hurt directly or by higher gas prices and lower economic growth in the years following the hurricane.

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