AP: Katrina Expected to Disrupt National Economy

[Hissyspit]

http://ap.tbo.com/ap/breaking/MGB5742Z1DE.html

Katrina Expected to Disrupt National Economy

By Jeannine Aversa
The Associated Press
Published: Aug 31, 2005

- snip -

"This will be one of the - if not the - biggest single event in terms of insured losses in U.S. history," said Julie Rochman, spokeswoman at the American Insurance Association.

From an economic point of view, the biggest worry is that fallout from the storm will propel already lofty energy prices even higher. That's because the Gulf Coast region is an essential hub for oil and gas production and distribution.

- snip -

"This is basically a supply shock that is very similar to the oil shocks of the mid 1970s and early 1980s and so it is going to knock down economic growth. There is no question this is bad news for the economy," said Nariman Behravesh, chief economist at Global Insight. "We will take a hit to growth but we won't fall into a recession."

- snip -

The nation's unemployment rate, now at 5 percent, probably will rise and job growth could slow in the months ahead as the toll of the storm ripples through the economy, analysts said. "On the national level, I think you'll see weakness in jobs figures for September, October and maybe even November," said Mark Zandi, chief economist at Economy.com.

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[sinkingfeeling]

1. That's not what the advisor to the White House said!

[rodeodance]

2. I think the big guy used "modest" effect

[durablend]

4. I thought he said "no effect"

Or maybe that was the freepers :crazy:

[peaches2003]

3. Rove hadn't given him the script yet

The new script will have everything from now until 2008 blamed on this hurricane.

[ET Awful]

6. First they have to figure out a way to blame the hurricane on the Clenis

then they can start blaming everything else on the hurricane.

For neocons, all blame must lead back to the Clenis, otherwise they're just not happy :).

[samsingh]

8. the white house lied and said minimal impact

[Demeter]

12. Well, maybe for BushCo It's Minimal

until the other shoe drops. Then it's goodbye DC, hello Hague!

[samsingh]

16. yes, you're right

they only measure impact based on what happens to their circle.

[demo dutch]

5. Duh, that is a given! and it will last for while. Eventually when they

manage to clean things up and start to rebuild the local economy will rebound a little, because of the construction etc.

[durablend]

7. Of course, THEN they'll say

"The economy is getting stronger and turning the corner!" (again)

Feel like the rat in a maze yet? :crazy:

[RazzleCat]

17. Construction?

I work for a construction company in the St. Louis region. We cant get supplies right now due to Katrina. So maybe construction will help, but first the river and roads have to open so that the supplies can get their. Items such as lumbar, plaster, gypsum. Just a note, you local store has plenty its when you order items by the ton that you hear we cant get that here, for a week or more with the reason given that the barges are not moving, and the supplies come into Town via barge, so they have to collect it from other outlets in the midwest, as all local warehouses are low.

[confludemocrat]

9. Govt workers get paid out of NO: the National Finance Center. Wrecked

It's totalled. And of course those who sell to the Gvt are paid from there also. Operations totally taken out. Why it's located there of course is more grist for the mill.

[Eloriel]

19. OMG. That's BIG, very big. That's a disaster all by itself. I wonder if

there are any redundant systems for that elsewhere?

Oooo, gives me the shivers. Really! It does. This is BIG.

[confludemocrat]

22. Correction: NFC is USDA only

sorry.

[BrightKnight]

10. cheaper to improve the levee system

It would have been cheaper to provide the Corps of Engineers with the resources needed to protect the city.

There was enough pork in the energy and transportation bills to cover the cost. The Repiggies were too busy milking the country to provide effective government. New Orleans was denied the resources for partisan political reasons.

Everyone saw this coming. There was a near miss just last year. This hurricane season is twice as bad. New Orleans has been screaming about this for years.

[demo dutch]

11. Yep, what's a big concern is whether insurance companies will try to avoid

paying claims, due to the fact that the breach of the levees was not a natural disaster but didn't hold due to lack of maintenance in order words a man-made mess.

[BrightKnight]

13. They sold policies there with full knowledge of the situation.

There are some places where you can not get flood insurance. New Orleans was not one of them.

Any jury would simply laugh at an insurance company that tried to do that.

[demo dutch]

14. Agreed, but some might try! Suing would involve money and class action

law suit, and time. I hope they won't even try to get away with that one

[Oreegone]

15. Are we so sure?

That they knew that the government was not maintaining it properly. Nobody would think they would do anything that stupid. Let me tell you from experience most insurance people are Republicans and think their commanders in chief do no wrong if they are their ilk.

How were they to know George would undermine their business and not care for them properly?:sarcasm:

[WCGreen]

18. All those people whose jobs went away

will seriously tax the Unemployment funds of LA, MI and AL.....

Plus, the money from the FUTA....

The lost taxes.....

This is a disaster of biblical proportion for those three states, especially since they insist on clinging to the bottom in every measure of social and civic partsipation....

[Ernesto]

20. Duh?

[Porcupine]

21. Just one leg of the new Trifecta, Katrina, Peak Oil.....

anyone see where our health care system went?