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Gold/Mining/Energy : Big Dog's Boom Boom Room
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From: energyplay8/28/2005 2:50:46 AM
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Fallout from worse case events -

Assuming major damage to New Orleans and area.

1) Insurance companies will need to sell stocks and bonds next week to get funds to pay massive claims. This may result in market intervention to stabalize markets.

Since insurance risk is spread around the world by various re-insurance programs, Europe and Japan will also be affected.

There may then be a need to lower interest rates and push money into markets.

The post 9/11 response provides a model.

2) Exports and imports via Mississppi river may be stopped for some period - river blocked, piers and loading areas damaged or more likely inaccesible.

This will cut food and grain exports, coal exports and many other items -

Can some one comment on what goes down the Missippi.

There's a possible bypass I think along the Tennesse - Tomibiggie (Ten-Tom)

3) There will be a large number of displaced persons looking for shelter, or moving to other cities. They may fill up all the condos being built on spec.

Some will effectively take their jobs with them. Others will face unemployment. There will be a large number of constructuion jobs for rebuilding, but this market is already tight with the rebuilding in Florida.

4) There may be a need to tap the Strategic Petroleum Reserve to supply oil to replace that lost from the Gulf.

5) After the Hurricanes in Florida, serious damage to New Orleans will change the preception of living in Hurricane prone areas. Expect home sales and business relocation to Florida to drop.
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