Wealth Evaporates as Gas Prices Clobber McMansions

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Homeowners in the exurbs — commuter towns that lie beyond cities and their traditional suburbs — aren’t the only ones whose assets have taken a hit because of the surge in energy costs.


Companies such as General Motors Corp. are writing off billions of dollars in plants and equipment that are no longer viable in an age of dearer oil. The destruction of wealth and capital will weigh on U.S. growth for years to come.


“Our whole economy reflects the relative costs of energy: the cars we drive, the houses we occupy, the kinds of factories we have and the equipment in them,” says Dana Johnson, chief economist at Comerica Bank in Dallas. “I’m expecting relatively large changes in all of these things.”



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