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TrimTabs
- Press Release - Sept 1, 2005 Katrina Economic Impact Should be Short-Lived U.S. Wage & Salary Growth Should Surge an Additional 3% to 4% by Early November Due to Policyholders Receiving $20 to $25 Billion From Katrina Claims; Until Then Wage & Salary Growth Likely to Drop 1% to 5+% From 6+% Santa Rosa, CA - September 1, 2005 - "As horrible as natural disasters are for the people affected, the aftermath of Hurricane Katrina should be bullish for the U.S. economy over the medium term," said Charles Biderman, CEO of TrimTabs Investment Research. Any slowdown in economic growth should last no longer than two months and perhaps no longer than six weeks. "Sensationalists are predicting that the aftermath of Hurricane Katrina will trigger a dramatic slump in U.S. economic growth. Some analysts are even worrying that the U.S. economy will fall into recession in late 2005 or early 2006. We believe these fears are overblown, absent the uncovering of an already-existing major disaster," added Biderman. "What matters as we all try to look forward are the facts, not opinions, and we report on the facts daily." About
three million people, or 1% of the population of the U.S., currently lack
power. Except for New Orleans, economic activity in the impacted area
of the Gulf Coast is below national average. "Thus, we would expect
growth in withholdings to drop by no more than 1% year-over-year - the
equivalent of stopping wages and salaries for 1% of the US population,"
said Madeline Schnapp, Director of Macroeconomic Research. "That
means growth in withholdings should slow to approximately 5% year-over-year
over the next six to eight weeks from the 6% year-over-year pace since
the beginning of this year," she explained. #
# # CONTACT: Madeline
Schnapp |