NYSE Soon To React To The Hurricane

Does anyone else see this?

The NYSE as well as other markets, have been very very stable and very quiet since the landing of Katrina and subsequent physical damages as well as the damage inflicted on the national economy and its infrastructure.


This is very strange, and I have to wonder if its the result of some other influences that have a stabilizing intent.

Too many times I have watched much lesser news and much lesser events affect the overall performance of the national, let alone the international, markets.

The stock markets are generally very quit around the major holidays, especially the week before labor day. So not a great deal of volume and not a great deal of price action. Many traders, brokers, etc. take the week off.

Another issue is that major storms generally produce both positive and negative economic factors. Negative such as an increase in unemployment. However, the positives tend to outshine the negatives. And what are the positives? THe greatest is probably spending. It will take a lot of money and purchases to rebuild the area. Raw materilas, building supplies, and ultimately workers to rebuild. A lot of money is expected to be pumped into purchases and many companies that seel the goods wll benefit. Kind of like a war and its positive economic impact. Also, new factories in NO will be state of the art and paid for by the Insurance COmpanies.

The Insurance stocks are probably another matter. Have not checked but they probably went down this week.

Well even though I kinda agree,...

I look at it this way.


The markets have barely hickupped.

At least one airline will not be able to survive,
One of the largest cities in the country no longer exists,
A major energy infrastructure has been damaged,
A major crop distribution point has been damaged,
A large portion of people nationwide completely changed their holiday plans,
Many lives were lost, many jobs were lost,
Many states are expending assistance,
Energy costs have spiked effecting everyone,
Monies spent on rebuilding will not be in the pipeline for quite some time,
Monies spent in helping those by the government are sourced from tax dollars in an already strained budget,


I could go on and on, but I just dont see the markets staying where they are.
Instead I feel a major correction is expected and soon.

A lot of it will be offset by speculation that certain well connected companies will make literally # loads of money to rebuild another unsustainable man made project. Also we are on welfare as a country. Yes it's true our government and everyone in it are on world welfare. Other countries are already propping up our economy with loans, releasing gas and oil from their reserves to offset economic hardship. The world needs to keep America floating to save their own economies. Funny as hell all of these fricken republican morons bitching about welfare when they are also. WE ALL ARE!

Ever hear of something called the "Plunge Protection Team"? google search

They must be hard at work.

Markets and economic indicators like the CPI can no longer be relied upon to reflect reality IMO.
See for example Lies, Damned Lies and Statistics - Calculating the Consumer Price Index

The economic impact of this storm season (not over yet) will be felt for a long time to come, especially if Asia is also hit bad by Typhoons and it looks like it might: NEWS: Typhoon Talim Terrorises Taiwan
.

Edit: link fix

[edit on 9/4/2005 by Gools]

Interesting information Gools, thanks.



... and then some month's later, when some stability can be sensed, the Fed will announce with hope of stimulating growth and spending, that, yes, we have just exited a recession and a period of inflation with flying colors, like everybody else already didnt know with increased prices on everything, increased interest rates, and strained budgets.







[edit on 4-9-2005 by smirkley]

Can we hear them go KRAAAAASH!

Just reading a few articles, and the sentiments do exist...

Costs will mount the longer the recovery takes, risk expert says, noting that loss of economic activity exceeds $100 million a day.

The economic hit from Hurricane Katrina could top $100 billion, a major insurance risk modeler said Friday.

MSN

Since it hit the U.S. energy infrastructure where it is most vulnerable -- in the oil-producing, oil-importing and oil-refining complexes of the Gulf of Mexico and the Gulf Coast -- Katrina's effects will ripple out across the nation. The economic effects may be negative enough to tip the economy into a recession next year.

MSN