Putting Sandy In Destructive Context
Given Sandy's status as 'worse than the worst case', it is perhaps not surprising that our estimate of the total cost being in the $50-100 billion range is not totally off mark given the discussions that ensued. By comparison Katrina's total loss/damage cost was $108bn. BofAML is a little more hopeful with estimates in the $10-20bn range - which seems optimistic to us, and further note that while it is a big hit to wealth, once the offsetting effects (Keynesian broken windows?) are taken into account, it will likely have a very small impact on economic growth. Sandy is still in the Top 5 in terms of economic damage among modern hurricanes, and as BofAML adds, ironically, Sandy may even contribute further to the policy bickering in Washington. With so much of our central-banker-in-chief's efforts focused on raising our wealth perception, we wonder if this will have greater implications than merely the physical damage.How Bad will Sandy be?http://www.zerohedge.com/news/2012-10-31/putting-sandy-destructive-context
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