Prometheus 6

Standard economic rundown, but ignoring the high "d'oh!" factor of the title led me to two things I'd like to point out.

First of all, there's a picture of a really fine sister and her son at the top of the page who gets a line for no reason I can discern (her husband isn't in the photograph, but he's in the picture so don't get stoopit). Secondly, down in the middle there's a really tight explanation of why the looming end of the housing bubble will fuk you up.

The blow has been softened in recent years by falling long-term interest rates, which have allowed homeowners to refinance their mortgages and cut their monthly payments, and by rising house values.

"You don't have to take a couple hundred bucks and stick it in the bank each month, because your home price is going up," said Lakshman R. Achuthan, managing director of the Economic Cycle Research Institute in New York. "You might even withdraw some money."

Economy Shows Signs of Strain From Oil Prices
By JAD MOUAWAD and DAVID LEONHARDT

Inflation surged last month, the government reported yesterday, as the long rise in energy prices finally seemed to be pinching the American economy. After absorbing the burden of oil at $40 a barrel, then at $50 and beyond, consumers have started to react as prices have risen above $60 in recent weeks.

Wal-Mart blamed high oil prices yesterday as it reported that in the recent quarter its profits rose at their slowest rate in four years. The chief executive, H. Lee Scott Jr., told investors that expensive oil was worrying him because it seemed to be erasing recent income gains for many customers.

Airlines have already felt the sting of increasing jet fuel costs. Last week, Delta, United and Continental raised domestic fares in their latest attempt to stem losses; Delta is struggling to avoid bankruptcy. United Parcel Service recently reminded its drivers not to leave truck engines running while they deliver packages.

Nearly all of the jump in inflation last month came from energy. Overall prices rose 0.5 percent in July - and 3.2 percent over the last year - after having been flat in June.