Fox Business
Expand
Browse All Video
Watch Live

You're watching...

What Will Hurricane Sandy’s Economic Damage Be?

Details

  • Description

    FBN’s Liz MacDonald on the potential economic impact of Hurricane Sandy.

  • Duration 4:04
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Assess the impact that this hurricane will have on the economy.

We're joined by Fox Business stocks senator Lindsey McDonald -- -- let let's start with just -- the straightforward.

I mean.

The markets closed for a couple of days.

Millions of people not able to get to work I mean this is is gonna have an extraordinary impact on the consumption economy is wrong.

Yeah I think you're right -- and what we're doing is we're compiling the estimates that we're getting.

A from economists who work at Wall Street shops -- down there in Washington DC.

They know what strikes me -- there's been a lot of comparisons to Hurricane Katrina.

I would say that is not the comparison to make because we're talking about the most densely populated 500 mile -- the United States.

Whereas with the fifth of the US economy is generated fit a fifth of the population lives.

And -- you know fifth that car sales a -- of housing starts -- Katrina was really narrowly focused in it was a tragic event but haven't Hurricane Katrina.

This is more like the hurricane that hit in 1938.

That helped carve out and create the Hamptons and the east end of Long Island.

Certainly possibly this hurricane redefining the coasts of New Jersey in similar fashion.

But we're talking about -- estimates of fifty billion dollars saying economic damages.

I would say we can't get a ballpark number on this again about 21 states is certainly DC affected.

Possibly two dozen states in the end affected by the slew.

Nowhere near the loss of life.

As Katrina.

Because people didn't respond.

Two two we've and we've got to -- the National Weather Service the national hurricane senator norm.

All the meteorologists.

Her up and down -- great credit because they did.

Alert people to it to them to what was common on the national -- that was to many people.

Yet it's still happening so that's what's really typical.

To get you know good decent -- -- an estimate of what the economic damages will be you know JPMorgan Chase out saying look we could see -- battered housing.

And construction industry getting a nice 36 billion dollar boosts.

-- -- rebuilding but they haven't seen myself wait a second where's that money gonna come from is it going to be pulled away from retail sales right because that money has to come from somewhere so we see retail sales and as you wish you brought up.

Consumer spending take a hit that's a good question to ask right.

Absolutely and -- it's interesting to people talking properly the refineries that -- close affecting.

Compared to -- a small amount of countries total refinery production.

In the other thing is if that -- Millions of people were not traveler right now they're not going to work so there's not offset on demand may be a greater offset on demand -- there is loss and production will be back.

Yeah I think they are absolutely right and -- think about it.

-- -- -- Katrina hit the of the US economy has created 200000 jobs a month.

In September 2005 when Katrina hit just 66000.

Jobs a month than debt up to 84000.

Jobs a month.

And only until that November to the economy really start to.

Basically certificates.

-- over 380000 up so the question is.

Will we see this -- dipped into negative territory.

Basically a contraction the answers possibly yes Societe Generale.

It's already out there saying that sandy could cause industrial production to dip in October.

And this quarter you could see a negative GDP growth -- so that's an issue.

For the quarter -- that would bear that would be tremendous impact.

And of course -- you -- we'll have to wait and see.

But we've got tomorrow coming from markets have been closed for two whole days.

Investors pent up anxious to express their views with their money what's going to have.

-- market's going to be rough sledding I think there's going to be selling pressure here's why were a lot of hedge funds and institutional investors like pension funds -- fiscal and their fiscal year and it is October.

-- what they're gonna try to do what is dump losers to get the tax write off so that adds to the pressure.

On the opening tomorrow's going to be -- skittish opening according to sources at Goldman Sachs.

And JPMorgan Chase so watch out it could sort itself out by next week but tomorrow we're expecting volatility.

-- --

Load More