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Gulf Coast Braces for Economic Storm

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    Wells Fargo senior economist Mark Vitner on how Isaac could impact the Gulf Coast economy.

  • Duration 3:26
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And that brings us to our next guest -- -- barrels toward shore the Gulf Coast bracing for economic damage as well joining us now is mark vintners seeing.

Economist at Wells Fargo mark.

How worried are you about this hurricane hitting this part of the country particularly at this time in our economy.

Well it's it's a very problematic.

Part of the country you -- hurricane hit anywhere in.

And even if it's you know quote just a tropical storm I mean they.

If -- if you if your -- -- blown off by tropical storm we really don't you know you don't care it was a tropical storm or hurricane is just as devastating.

But in this part of the country we have so much of our oil infrastructure particularly a lot of of oil refineries we've got a lot of production of both oil and natural gas that's offline.

It's it's not that difficult to deal with that the storm just blows through but.

But there's a lot of stuff between but beneath the surface -- lot of pipelines that can be disrupted.

And inventories.

Particularly.

Diesel fuel and jet fuel.

Are extremely low already.

So we can see both up pressure more upward pressure on prices and also some supply disruptions.

If the storm gets really bad.

And what was very telling as the president declared a state of emerging emergency for Louisiana but the governor.

Took the -- are -- farther and didn't want just direct federal aid but requested.

Full reimbursement for all emergency protection measures.

That the state then pays for what kind of condition are just these Gulf Coast states and financially and these talents municipalities.

To deal with this kind of disaster.

Well Louisiana you you have all of these levees you have so much of the economy that's below sea level.

And you've got all of these levees many of which were repaired or rebuilt after Katrina.

We don't know exactly how well they're going to hold off -- of the strains of of a severe storm is likely to dump a lot of rain.

-- on this area and and it really depends on how the storm comes -- I mean there's no two storms are alike.

And and I think that's -- that's probably the motivation for for the for being.

Even more prepared than they give them for hurricanes in the past.

At one less thing to change the subject mark but it does dovetail you have.

The Republican Convention going on now the Democrats follow up next week how prepared are investors -- you have.

A statistical tie between these two men help it -- prepared our investors for if left front runner begins to a mark at this point.

Well that that will be interesting to watch I I think that that.

Uncertainty before presidential election is nothing new typically what we see is that the markets.

Kind of get a little quiet although we've got a lot of other things impacting the markets the fiscal -- European financial crisis.

All of which may be a little bit of a negative or maybe a potential big negative before the election and then usually get relief rally regardless.

Of who wins immediately after the presidential election because people -- so glad to get it behind us.

But but we will probably see a market market response if one candidate breaks out one way or the other given how tight the conventions artery -- Mark good to talk to thank you so much for being here Martin bit -- with Wells Fargo.

And Mitt Romney.

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