Katrina's economic impact?


markyj987

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Some are saying that Katrina will cause long-term problems for the economy. Others suggest that since our economy is strong for the most part, that we'll be able to absorb it and the impact will be minimal

There will definitely be a short-term spike in unemployment, and a drop in the GDP, but a small number are even saying that the rebuilding process, government aid, individual and corporate donations, insurance payments will make the economy break even or even come out slightly ahead.

If it's any indication where investors stand, the Dow was up about 140 points on Tuesday and 40 on Wednesday. Of course, these might just be kneejerk reactions to lower oil prices.

Perhaps I'm an optimist, but I really think we will at least break even economically--maybe even see some growth. Thoughts??

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Re: Katrina\'s economic impact?

Speaking of lower oil prices, whats going on with that.When Katrina hit oil was a little over 70$ a barrel.After Katrina we seen the overnight jump that put the price of gas at 3$ a gallon on average.Last night they said oil was back down to something like 64$ a barrel but gas is still at 3$ a gallon confused.gif

Im not an optimist like you grin.gifSeriously, every year after the Hurrican season there a jump in building materials.Stands to reason a lotta them get shipped down to the affected areas and creates a short term shortage in the northern part of the country.This ones gonna take a lot more building material than usual.My customers in turn holler at me like I control the prices grin.gifDont know about the rest of the economy but Im gonna start getting a lotta upset looks when I hand people estimates in the near future LOL. grin.gif

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Re: Katrina\'s economic impact?

I hope any contractors that head down there check into things before hand.Back in 92 or 93 i think it was a pretty good hurricane hit Florida.A crew from up here went down looking for work after the storm and there was so much red tape involved in the rebuilding it was almost impossible to even start.They wound up going fishing instead grin.gif

A lotta insurance money, federal money, and the likes changes hands after these, some states require you to be licensed in that state to work.I can see the reasoning though, lotta fly by night outfits and even some highly inflated labor prices always accompany these things.

On the brighter side gas dropped a dime here yesterday, dont make me feel a lot better but it did drop grin.gif

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Re: Katrina\'s economic impact?

Chris, our neighbor well kind of sorta(the man that owned the home closest to us about a 1/3 a mile away), went down to Florida last year after the hurricanes hit down there. He was, is a lousy excuse for a contractor, nothing they build is level or square. I would not let him build a dog house for me. Anyhoo, he has been in Florida ever since. Supposedly making a fortune.

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