It is possible considering we are already 16 trillion dollars in debt already. Yes, there will be new construction but are there enough qualified workers to complete it in a timely fashion. More importantly, where will the insurance money come from? It will take time for Wall Street to reopen after the flooding, destruction of necessary equipment, computers, faxes, etc. It could represent higher taxes, jobs have been lost. I have seen similar situations in my 67 years of life to believe these facts are true. Where will the money for recovery come from?
gatita
Degree in History (focus Jewish studies) and Spanish, New Mexico State U. 1990
I really don't think that Hurricane Sandy will have much, if any, effect on our economy. All of the large buildings, the subway system, and the electrical power grids of New York City were insured. And the folks who owned private homes in New Jersey, Maryland, West Virginia, etc. all probably had home owner's insurance. The insurance companies, along with help from F.E.M.A. will pay to rebuild everything that the storm destroyed.
And don't worry about the insurance companies going broke. When they figured their rates or premiums for casualty or home owner's insurance, they figure in disasters like Sandy. Actuarial science is very exact, and you can bet your bottom dollar that the insurance companies have more than enough money set aside to pay any and all claims which may arise as a result of Sandy. And if by some chance they miscalculated the amount of money they'd have to pay out, all of these insurance companies are re-insured by other companies, so even the claims they will pay for won't all be paid with their own money. Their re-insurance companies will all kick in so no one will be hit too hard.
And F.E.M.A. works in much the same way. They have billions of dollars set aside for disasters like this one, so they're ready. And they are also re-insured in case a huge claim like Sandy comes along. So we'll be fine.
Often when a country has to re-build it helps employment and stimulates the economy. Its certainly unfair for what President there is next month.
There is something called INSURANCE and also the rebuilding itself will be a stimulus along with some pent-up demand after the storm and aftermath.
What do you mean "another"? We are still IN a recession.
dunno :P
Early damage estimates are already in the billions. I'm sure it will go higher. How will this affect our financial situation?
