Putting Sandy In Destructive Context

Putting Sandy In Destructive Context

by Tyler Durden

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