Tuesday, February 06, 2007

End of Global Warming-And U.S. Recovery?

Global warming seems to be over for now. Here in northern Sweden it is -25 degrees celsius ( -13 degrees fahrenheit) right now. And it's very cold in North America too, a cold which has killed at least six people.

The cold snap could have significant economic consequences too. Just a few weeks ago, I told you about how the then relatively mild weather boosted the U.S. economy by reducing oil prices and stimulating outdoor activities normally supressed by the cold. Now after the cold snap, oil prices have recovered and outdoor activities have likely been significant supressed.

Given the relative strength in momentum of the recovery, it seems unlikely that the cold will produce a recession. But it remains a possibility and at any rate economic growth will certainly slow.


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