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New Orleans and the Coming Stock-Market Boom
Copernicus ^ | SEPTEMBER 5, 2005 | Copernicus

Posted on 09/07/2005 8:43:17 AM PDT by Matchett-PI

The most noticeable thing about recent government in New Orleans is: there wasn't any. Just now is it starting to come back.

Government is politics. Politics is money. Money and economics are married to each other.

George Friedman, founder of Stratfor Global Intelligence, writes last Thursday, "... geopolitics will force the city's resurrection, even if it is in the worst imaginable place." His logic is penetrating, comprehensive, and difficult to dispute. I believe his conclusion is highly valid.

Where's the money going to come from? You guessed it--Washington.

Even as commentators point to the potential for exploding inflation from runaway energy prices, the Fed will be acting now to flood massive amounts of new money into the banking system to pay for the reconstruction of New Orleans and perimeter.

First stopping place for the money will be the stock market where its the initial effects will be seen in spring or summer of next year. The market will bottom and then start a great rise to new highs. As the money moves on from there, it will begin to spill over into real capital investment and expenditure, booming the economy again by the end of 2006 perhaps in time for the midterm elections.

The Fed has done this before: mostly recently in 1998 when Russia defaulted on her bonds and Long-Term Capital Management was collapsing; then again at the end of 1999 in anticipation of Y2K, the catastrophe that didn't happen. These were both short-duration events. New Orleans will be long drawn out. The Fed will keep feeding and feeding.

I do not much believe in short-term forecasting. Yet the stock market may give up surprisingly little ground in view of the forthcoming Fed posture related to Katrina's devastation.

"Follow the money." It should begin to show up where we can see it in six months to a year in the stock market and the economy.


TOPICS: Business/Economy; Editorial; Extended News; Government; News/Current Events
KEYWORDS: katrina; rebuildingno; stockmarket
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The Stratfor article was posted on Free Republic here:

New Orleans: A Geopolitical Prize
Strategic Forecasting ^ | 9/02/2005 | George Friedman

Posted on 09/02/2005 10:38:04 AM EDT by cll

1 posted on 09/07/2005 8:43:17 AM PDT by Matchett-PI
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To: cll

((((ping))))


2 posted on 09/07/2005 8:44:27 AM PDT by Matchett-PI ( "History does not long entrust the care of freedom to the weak or the timid." -- Dwight D. Eisenhow)
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To: Matchett-PI

I can sort of see it.

Think of all the construction jobs and stuff like that which will be created in the new couple years in the areas affected.

of course, I wonder if they will have trouble finding warm bodies to fill the positions like they have had in Florida.


3 posted on 09/07/2005 8:46:17 AM PDT by MikefromOhio (Ohio State vs. Texarse, Sept 10th)
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To: Matchett-PI

Great stock market boom and I will be absurdly rich ping.


4 posted on 09/07/2005 8:47:15 AM PDT by Pondman88
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To: MikeinIraq; All

Imagine the IT infrastucture that has to be done also..


5 posted on 09/07/2005 8:47:19 AM PDT by KevinDavis (the space/future belongs to the eagles --> http://www.cafepress.com/kevinspace1)
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To: Matchett-PI

Blow up NO. Fill in the hole. Make a parking lot.


6 posted on 09/07/2005 8:47:32 AM PDT by RetiredArmy (All democrats are ENEMIES of the Republic!)
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To: Matchett-PI
The market will bottom and then start a great rise to new highs. As the money moves on from there, it will begin to spill over into real capital investment and expenditure, booming the economy again by the end of 2006 perhaps in time for the midterm elections.

Well there you go some good news re:Katrina. Wait for the market to bottom and than invest. Good idea.

7 posted on 09/07/2005 8:47:33 AM PDT by stopem
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To: KevinDavis

I would imagine so yes.

New Orleans probably needed some updating, both in buildings and in infastructure. Most cities that old do.

No better time than now.


8 posted on 09/07/2005 8:48:52 AM PDT by MikefromOhio (Ohio State vs. Texarse, Sept 10th)
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To: Matchett-PI

Perpetual cycles of flooding and rebuilding in the same exact spot (with taxpayer money) is the most communist idea I've ever heard.

It's stupid, and that a few investors will profit means we need to lock those people away - not reward them with government contracts.


9 posted on 09/07/2005 8:48:52 AM PDT by SteveMcKing ("I was born a Democrat. I expect I'll be a Democrat the day I leave this earth." -Zell Miller '04)
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To: MikeinIraq
The President of Mexico has offered 2 million construction workers. Just think, they can build it and then after it is built, they can do the land scaping also!!!!! 2 for 1. Then they can all go on government welfare as "legal" immigrants.
10 posted on 09/07/2005 8:49:14 AM PDT by RetiredArmy (All democrats are ENEMIES of the Republic!)
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To: KevinDavis

That's correct. Those who follow IT and communications suppliers should be seeing their favorite companies getting some serious contracts soon.


11 posted on 09/07/2005 8:50:29 AM PDT by RightWhale (We in heep dip trubble)
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To: Matchett-PI
One of the most significant events of the first Bush term occurred very soon after he was inaugurated. I'll bet most people don't even remember this -- in fact, I only remember it because it was so unusual at the time and I heard a great commentary from someone (I believe it was Larry Kudlow) at the time who pointed out just how much of an impact it would have on the U.S. economy.

The event I'm referring to was an interest rate cut implemented by the Federal Reserve early in 2001 at a time when investors least expected it -- mainly because it was announced at an unscheduled meeting of the Fed and not at one of their regular quarterly rate announcements. Kudlow's theory was that the economy at the time was bogged down by interest rate expectations leading to "institutional stagnation" among investors. This would be sort of like a person who doesn't buy a new computer because they know a better/cheaper one will be available in six months, then doesn't buy one in six months because a better/cheaper one will be available six months later, etc.

The surprise interest rate cut helped overcome this stagnation by driving home the point to investors that they should not base their long-term investing strategy on short-term events that could change at times when they least expect it.

My take on this is that Kudlow was absolutely right. And while I can make no predictions, it would not surprise me to see a similar "emergency" interest rate cut from the Fed in the aftermath of Katrina.

12 posted on 09/07/2005 8:52:56 AM PDT by Alberta's Child (I ain't got a dime, but what I got is mine. I ain't rich, but Lord I'm free.)
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To: MikeinIraq

It's really simpler than that Mike. The fed makes the price banks pay for money really attactive. The banks in turn set an attractive rate for consumers and business. The fed turns the spigot on and off. The markets follow this activity albeit on a delayed basis.


13 posted on 09/07/2005 8:53:24 AM PDT by kinghorse
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To: Matchett-PI
So much for the housing bubble :)

I think it's going to be a boom market too.... in multiple sectors.

14 posted on 09/07/2005 8:55:11 AM PDT by kjam22
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To: RightWhale

I have a friend that works for an IT Disaster Recovery company and they were receiving stuff from various company's in NO with no PO's, just notes saying please restore, we don't care how much it costs.


15 posted on 09/07/2005 8:57:23 AM PDT by MarkeyD (Cindy - The new 'C' word! I really, really loathe liberals.)
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To: SteveMcKing; RetiredArmy

"Perpetual cycles of flooding and rebuilding in the same exact spot (with taxpayer money) is the most communist idea I've ever heard. It's stupid, and that a few investors will profit means we need to lock those people away - not reward them with government contracts." ~ SteveMcKing

"Blow up NO. Fill in the hole. Make a parking lot." ~ RetiredArmy

You really ought to read the Stratfor article. I've copied it for you below, to make it easy.

New Orleans: A Geopolitical Prize
Strategic Forecasting ^ | 9/02/2005 | George Friedman

The American political system was founded in Philadelphia, but the American nation was built on the vast farmlands that stretch from the Alleghenies to the Rockies. That farmland produced the wealth that funded American industrialization: It permitted the formation of a class of small landholders who, amazingly, could produce more than they could consume. They could sell their excess crops in the east and in Europe and save that money, which eventually became the founding capital of American industry.

But it was not the extraordinary land nor the farmers and ranchers who alone set the process in motion. Rather, it was geography -- the extraordinary system of rivers that flowed through the Midwest and allowed them to ship their surplus to the rest of the world. All of the rivers flowed into one -- the Mississippi -- and the Mississippi flowed to the ports in and around one city: New Orleans. It was in New Orleans that the barges from upstream were unloaded and their cargos stored, sold and reloaded on ocean-going vessels. Until last Sunday, New Orleans was, in many ways, the pivot of the American economy.

For that reason, the Battle of New Orleans in January 1815 was a key moment in American history. Even though the battle occurred after the War of 1812 was over, had the British taken New Orleans, we suspect they wouldn't have given it back. Without New Orleans, the entire Louisiana Purchase would have been valueless to the United States. Or, to state it more precisely, the British would control the region because, at the end of the day, the value of the Purchase was the land and the rivers - which all converged on the Mississippi and the ultimate port of New Orleans. The hero of the battle was Andrew Jackson, and when he became president, his obsession with Texas had much to do with keeping the Mexicans away from New Orleans.

During the Cold War, a macabre topic of discussion among bored graduate students who studied such things was this: If the Soviets could destroy one city with a large nuclear device, which would it be? The usual answers were Washington or New York. For me, the answer was simple: New Orleans. If the Mississippi River was shut to traffic, then the foundations of the economy would be shattered. The industrial minerals needed in the factories wouldn't come in, and the agricultural wealth wouldn't flow out. Alternative routes really weren't available. The Germans knew it too: A U-boat campaign occurred near the mouth of the Mississippi during World War II. Both the Germans and Stratfor have stood with Andy Jackson: New Orleans was the prize.

Last Sunday, nature took out New Orleans almost as surely as a nuclear strike. Hurricane Katrina's geopolitical effect was not, in many ways, distinguishable from a mushroom cloud. The key exit from North America was closed. The petrochemical industry, which has become an added value to the region since Jackson's days, was at risk. The navigability of the Mississippi south of New Orleans was a question mark. New Orleans as a city and as a port complex had ceased to exist, and it was not clear that it could recover.

The Ports of South Louisiana and New Orleans, which run north and south of the city, are as important today as at any point during the history of the republic. On its own merit, POSL is the largest port in the United States by tonnage and the fifth-largest in the world. It exports more than 52 million tons a year, of which more than half are agricultural products -- corn, soybeans and so on. A large proportion of U.S. agriculture flows out of the port. Almost as much cargo, nearly 17 million tons, comes in through the port -- including not only crude oil, but chemicals and fertilizers, coal, concrete and so on.

A simple way to think about the New Orleans port complex is that it is where the bulk commodities of agriculture go out to the world and the bulk commodities of industrialism come in. The commodity chain of the global food industry starts here, as does that of American industrialism. If these facilities are gone, more than the price of goods shifts: The very physical structure of the global economy would have to be reshaped. Consider the impact to the U.S. auto industry if steel doesn't come up the river, or the effect on global food supplies if U.S. corn and soybeans don't get to the markets.

The problem is that there are no good shipping alternatives. River transport is cheap, and most of the commodities we are discussing have low value-to-weight ratios. The U.S. transport system was built on the assumption that these commodities would travel to and from New Orleans by barge, where they would be loaded on ships or offloaded. Apart from port capacity elsewhere in the United States, there aren't enough trucks or rail cars to handle the long-distance hauling of these enormous quantities -- assuming for the moment that the economics could be managed, which they can't be.

The focus in the media has been on the oil industry in Louisiana and Mississippi. This is not a trivial question, but in a certain sense, it is dwarfed by the shipping issue. First, Louisiana is the source of about 15 percent of U.S.-produced petroleum, much of it from the Gulf. The local refineries are critical to American infrastructure. Were all of these facilities to be lost, the effect on the price of oil worldwide would be extraordinarily painful. If the river itself became unnavigable or if the ports are no longer functioning, however, the impact to the wider economy would be significantly more severe. In a sense, there is more flexibility in oil than in the physical transport of these other commodities.

There is clearly good news as information comes in. By all accounts, the Louisiana Offshore Oil Port, which services supertankers in the Gulf, is intact. Port Fourchon, which is the center of extraction operations in the Gulf, has sustained damage but is recoverable. The status of the oil platforms is unclear and it is not known what the underwater systems look like, but on the surface, the damage - though not trivial -- is manageable.

The news on the river is also far better than would have been expected on Sunday. The river has not changed its course. No major levees containing the river have burst. The Mississippi apparently has not silted up to such an extent that massive dredging would be required to render it navigable. Even the port facilities, although apparently damaged in many places and destroyed in few, are still there. The river, as transport corridor, has not been lost.

What has been lost is the city of New Orleans and many of the residential suburban areas around it. The population has fled, leaving behind a relatively small number of people in desperate straits. Some are dead, others are dying, and the magnitude of the situation dwarfs the resources required to ameliorate their condition. But it is not the population that is trapped in New Orleans that is of geopolitical significance: It is the population that has left and has nowhere to return to.

The oil fields, pipelines and ports required a skilled workforce in order to operate. That workforce requires homes. They require stores to buy food and other supplies. Hospitals and doctors. Schools for their children. In other words, in order to operate the facilities critical to the United States, you need a workforce to do it -- and that workforce is gone. Unlike in other disasters, that workforce cannot return to the region because they have no place to live. New Orleans is gone, and the metropolitan area surrounding New Orleans is either gone or so badly damaged that it will not be inhabitable for a long time.

It is possible to jury-rig around this problem for a short time. But the fact is that those who have left the area have gone to live with relatives and friends. Those who had the ability to leave also had networks of relationships and resources to manage their exile. But those resources are not infinite -- and as it becomes apparent that these people will not be returning to New Orleans any time soon, they will be enrolling their children in new schools, finding new jobs, finding new accommodations. If they have any insurance money coming, they will collect it. If they have none, then -- whatever emotional connections they may have to their home -- their economic connection to it has been severed. In a very short time, these people will be making decisions that will start to reshape population and workforce patterns in the region.

A city is a complex and ongoing process - one that requires physical infrastructure to support the people who live in it and people to operate that physical infrastructure. We don't simply mean power plants or sewage treatment facilities, although they are critical. Someone has to be able to sell a bottle of milk or a new shirt. Someone has to be able to repair a car or do surgery. And the people who do those things, along with the infrastructure that supports them, are gone -- and they are not coming back anytime soon.

It is in this sense, then, that it seems almost as if a nuclear weapon went off in New Orleans. The people mostly have fled rather than died, but they are gone. Not all of the facilities are destroyed, but most are. It appears to us that New Orleans and its environs have passed the point of recoverability. The area can recover, to be sure, but only with the commitment of massive resources from outside -- and those resources would always be at risk to another Katrina.

The displacement of population is the crisis that New Orleans faces. It is also a national crisis, because the largest port in the United States cannot function without a city around it. The physical and business processes of a port cannot occur in a ghost town, and right now, that is what New Orleans is. It is not about the facilities, and it is not about the oil. It is about the loss of a city's population and the paralysis of the largest port in the United States.

Let's go back to the beginning. The United States historically has depended on the Mississippi and its tributaries for transport. Barges navigate the river. Ships go on the ocean. The barges must offload to the ships and vice versa. There must be a facility to empower this exchange. It is also the facility where goods are stored in transit. Without this port, the river can't be used. Protecting that port has been, from the time of the Louisiana Purchase, a fundamental national security issue for the United States.

Katrina has taken out the port -- not by destroying the facilities, but by rendering the area uninhabited and potentially uninhabitable. That means that even if the Mississippi remains navigable, the absence of a port near the mouth of the river makes the Mississippi enormously less useful than it was. For these reasons, the United States has lost not only its biggest port complex, but also the utility of its river transport system -- the foundation of the entire American transport system. There are some substitutes, but none with sufficient capacity to solve the problem.

It follows from this that the port will have to be revived and, one would assume, the city as well. The ports around New Orleans are located as far north as they can be and still be accessed by ocean-going vessels. The need for ships to be able to pass each other in the waterways, which narrow to the north, adds to the problem. Besides, the Highway 190 bridge in Baton Rouge blocks the river going north. New Orleans is where it is for a reason: The United States needs a city right there.

New Orleans is not optional for the United States' commercial infrastructure. It is a terrible place for a city to be located, but exactly the place where a city must exist. With that as a given, a city will return there because the alternatives are too devastating. The harvest is coming, and that means that the port will have to be opened soon. As in Iraq, premiums will be paid to people prepared to endure the hardships of working in New Orleans. But in the end, the city will return because it has to.

Geopolitics is the stuff of permanent geographical realities and the way they interact with political life. Geopolitics created New Orleans. Geopolitics caused American presidents to obsess over its safety. And geopolitics will force the city's resurrection, even if it is in the worst imaginable place.

Send questions or comments on this article to analysis@stratfor.com.


16 posted on 09/07/2005 9:01:58 AM PDT by Matchett-PI ( "History does not long entrust the care of freedom to the weak or the timid." -- Dwight D. Eisenhow)
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To: Matchett-PI
I've heard talks given by Friedman on two different occasions, covering two different issues, making both short and medium term predictions (with much conviction) on how events would play out. He could not have been more wrong on either one. I'm guessing this one will be no different.
17 posted on 09/07/2005 9:02:43 AM PDT by green iguana
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To: Matchett-PI

Given the "logic" of this piece, Bush must immediately order every available B-52 into the air and saturation bomb every major American city.

Now THAT would be a REAL "BOOM."


18 posted on 09/07/2005 9:03:50 AM PDT by Dick Bachert
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To: MikeinIraq

People are buying up property in Baton Rouge like you wouldn't believe. Propery is only on the market a few minutes and it's sold - at offers over 10% of the market value / asking price. bttt


19 posted on 09/07/2005 9:04:57 AM PDT by Matchett-PI ( "History does not long entrust the care of freedom to the weak or the timid." -- Dwight D. Eisenhow)
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Comment #20 Removed by Moderator

To: MarkeyD

A couple of IT companies I follow, no need to mention names, are already heavily involved in restoring service. A lot of money is being spent already, $1 billion per day, on recovery, and beginning rebuilding is still several months away. Some are going to get significant boosts to their business, and [this is important] without even a hint of gouging.


21 posted on 09/07/2005 9:05:18 AM PDT by RightWhale (We in heep dip trubble)
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To: Pondman88
"Great stock market boom and I will be absurdly rich ping."


22 posted on 09/07/2005 9:06:36 AM PDT by Matchett-PI ( "History does not long entrust the care of freedom to the weak or the timid." -- Dwight D. Eisenhow)
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To: Matchett-PI
geopolitics will force the city's resurrection, even if it is in the worst imaginable place."

NOPE
When the price tag is announced and then when the next hurricane enters the gulf and comes near NOLA gonna be a completely different geopolitical atmosphere
23 posted on 09/07/2005 9:07:23 AM PDT by uncbob
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To: KevinDavis; MinuteGal; oldglory; mcmuffin; gonzo; JulieRNR21
"Imagine the IT infrastucture that has to be done also.."

Yep! If you haven't read the Stratfor article, you might want to - it is reeeeally interesting. I posted it in its entirety at #16 in this thread.

24 posted on 09/07/2005 9:10:30 AM PDT by Matchett-PI ( "History does not long entrust the care of freedom to the weak or the timid." -- Dwight D. Eisenhow)
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To: Matchett-PI

Many thanks.


25 posted on 09/07/2005 9:11:36 AM PDT by cll
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To: stopem
"Well there you go some good news re:Katrina. Wait for the market to bottom and than invest. Good idea."

Good News bump!

26 posted on 09/07/2005 9:11:42 AM PDT by Matchett-PI ( "History does not long entrust the care of freedom to the weak or the timid." -- Dwight D. Eisenhow)
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To: RightWhale

bump that comment.


27 posted on 09/07/2005 9:12:56 AM PDT by Matchett-PI ( "History does not long entrust the care of freedom to the weak or the timid." -- Dwight D. Eisenhow)
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To: Matchett-PI

No thanks. I stand by my previous comment. You can stick with yours.


28 posted on 09/07/2005 9:13:42 AM PDT by RetiredArmy (All democrats are ENEMIES of the Republic!)
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To: Dick Bachert

Given the "logic" of this piece, Bush must immediately order every available B-52 into the air and saturation bomb every major American city.

Now THAT would be a REAL "BOOM."


You are 100% correct. I'm stunned that on THIS site, this kind of idea is given credence. This notion has been covered by conservative economists many times. Sowell, Williams, Friedman, and Hazlett (sp?) especially. I believe it was Hazlett who called it the "broken window theory." Smash a storefront window and just stand back and wait for the economic prosperity as the repairman, the glass manufacturer, the glass seller, etc. all now have jobs and in turn take their wages and buy other things. Absurdity! Think of it this way. BEFORE Katrina you had X number of homes and businesses. AFTER Katrina (if the city is rebuilt) you will have spent 10s of billions of capital and irreplacable things like time, and what will you have? Exactly and precisely what you had BEFORE Katrina. Or... I set my house on fire, and then rebuild it, using all my savings. Before fire I had house and savings, after fire, I have house only.


29 posted on 09/07/2005 9:13:45 AM PDT by RayStacy
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To: RetiredArmy
Blow up NO. Fill in the hole. Make a parking lot.

Could you be any more insensitive. People have lost everything, even the ones who evacuated early. No jobs, no homes, nothing. When they are hurting this bad all they have is hope and a dream that one day they can go home again. But you want to kick them while they are down. And yes, New Orleans will be rebuilt. It is too vital to our economy. It is the number one port in the United States, with non-union workers, unlike strike happy Los Angeles dockworkers. One of the few places in this country willing and happy to locate oil refineries for the rest of the us because they know that is where the jobs are. A major oil port that can offload giant tankers offshore so we never have to worry about Exxon Valdez style spills. Plus a beautiful, european flavor city that is unique with history and culture, unlike so many generic american cities. Maybe if some of our lawmakers had spend a few bucks shoring up the levees and protecting the vital wetlands of this important economic area, instead of spending it on a 250 million dollar bridge to nowhere in Alaska and the 'big dig' in Boston--two projects that have nowhere near the value to the national economy as getting New Orleans up and running again. Even now the barges of harvest grain sit and wait on the Mississippi for the port to be opened again so it can be exported. Most people have no idea what the loss of this vital port will eventually mean to the economy.

30 posted on 09/07/2005 9:14:44 AM PDT by sportutegrl (People who say, "All I know is . . ." really mean, "All I want you to focus on is . . .")
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To: Alberta's Child
"...while I can make no predictions, it would not surprise me to see a similar "emergency" interest rate cut from the Fed in the aftermath of Katrina."

I wouldn't be surprised either.

31 posted on 09/07/2005 9:15:34 AM PDT by Matchett-PI ( "History does not long entrust the care of freedom to the weak or the timid." -- Dwight D. Eisenhow)
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To: Matchett-PI

Great post, thanks.


32 posted on 09/07/2005 9:16:45 AM PDT by mad puppy ( The Southern border needs to be a MAJOR issue in 2006 and 2008)
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To: sportutegrl
Yes, yes. Mr. Insensitive. That is me. I see wasting millions upon billions and billions to rebuild a city that next summer another hurricane can come through and completely blow away again. Yes, Mr. Insensitive. I am against wasting billions on a lost cause.
33 posted on 09/07/2005 9:16:51 AM PDT by RetiredArmy (All democrats are ENEMIES of the Republic!)
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To: MikeinIraq

San Francisco might be a good case study for NO.
The earthquake and fire in 1906 devastated the city, most buildings were gone.
The city had grown up in a haphazard way and some things couldn't be fixed the in the cities present form.
The earthquake and fire gave them the blank slate needed to build it back much better, old problems were fixed.
The city came back much faster than most thought possible.

Will NO do the same?


34 posted on 09/07/2005 9:16:57 AM PDT by HereInTheHeartland (The Democrat party is the official party of the Morlocks.)
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To: kjam22
"So much for the housing bubble :) I think it's going to be a boom market too.... in multiple sectors."

For the "BULLS", yeah. The negative Bears will find a good reason to nay-say everything and wind up cutting their noses off to spite their faces, though, as usual. LOL

35 posted on 09/07/2005 9:19:11 AM PDT by Matchett-PI ( "History does not long entrust the care of freedom to the weak or the timid." -- Dwight D. Eisenhow)
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To: cll

You're welcome. :)


36 posted on 09/07/2005 9:21:56 AM PDT by Matchett-PI ( "History does not long entrust the care of freedom to the weak or the timid." -- Dwight D. Eisenhow)
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To: RayStacy

Ol' breaux Ponzi keepin' busy, no?


37 posted on 09/07/2005 9:21:59 AM PDT by Orbiter
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To: RayStacy
I'm stunned that on THIS site, this kind of idea is given credence.

Good post. I'm tired of arguing with the perma-bulls. There's no tale of a forthcoming boom too wacky for them to fall for.

38 posted on 09/07/2005 9:22:05 AM PDT by Mr. Jeeves ("Violence never settles anything." Genghis Khan, 1162-1227)
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To: MikeinIraq
Think of all the stoves and fridges and air conditioners and computers and cars and on and on it goes.

Construction will keep on booming and so will consumer goods.

39 posted on 09/07/2005 9:22:16 AM PDT by concrete is my business (prepare the sub grade, then select the mix design)
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To: mad puppy

You're welcome!


40 posted on 09/07/2005 9:23:44 AM PDT by Matchett-PI ( "History does not long entrust the care of freedom to the weak or the timid." -- Dwight D. Eisenhow)
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To: RetiredArmy

Rebuild, rebuild, and rebuild some more!!!

Its the American way, my friend!!!

BILLIONS and BILLIONS are going to spent on New Orleans, Mississippi, etc.....It will be a booming region.


41 posted on 09/07/2005 9:24:25 AM PDT by Pondman88
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To: Matchett-PI
Ha ha ha. Any economist with a brain from Frederic Bastiat in 1850 to Walter Williams today has exposed this theory as lunacy. It even has a name, "The Parable of the Broken Window" and it is a variation of the "Free Lunch" theory.
42 posted on 09/07/2005 9:26:20 AM PDT by atomic_dog
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To: MarkeyD

Exactly. Henry Hazlett pointed out that a broken window does generate economic growth---fixing the window, more police, lumber/glass sales---but at the expense of other stuff we would be doing with that money (more productive.) So I think there will be a boom, but I think that it would have been even better, obviously, without the hurricane.


43 posted on 09/07/2005 9:28:24 AM PDT by LS (CNN is the Amtrak of news)
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To: RetiredArmy

What are you gonna use for a port?


44 posted on 09/07/2005 9:29:22 AM PDT by sportutegrl (People who say, "All I know is . . ." really mean, "All I want you to focus on is . . .")
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To: RetiredArmy

"The President of Mexico has offered 2 million construction workers."

They are already here, you can find them in California.


45 posted on 09/07/2005 9:30:06 AM PDT by Amish with an attitude (An armed society is a polite society)
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To: Matchett-PI

A smart investor would ignore Baton Rouge and start looking at waterfront industrial properties in major cities like Seattle, Portland, and Oakland -- and smaller cities like Superior, Wisconsin and Duluth, Minnesota. With The port of New Orleans out of commission for a while, these ports are going to become alternative hubs for the transportation of products to and from the heartland of the U.S.


46 posted on 09/07/2005 9:33:55 AM PDT by Alberta's Child (I ain't got a dime, but what I got is mine. I ain't rich, but Lord I'm free.)
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To: HereInTheHeartland

Chicago is another good example of rebuilding after a hideous disaster. The Fire of 1871 brought total devastation, but Chicago was rebuilt and changed the building codes as well.


47 posted on 09/07/2005 9:39:27 AM PDT by Rollee
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To: Alberta's Child

You make some good points.


48 posted on 09/07/2005 9:46:37 AM PDT by Matchett-PI ( "History does not long entrust the care of freedom to the weak or the timid." -- Dwight D. Eisenhow)
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To: Pondman88

Things like this are always bullish for the economy overall.


49 posted on 09/07/2005 9:46:44 AM PDT by HereInTheHeartland (The Democrat party is the official party of the Morlocks.)
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To: sportutegrl
What are you gonna use for a port?

That's where the author's logic is so flawed - the port doesn't need New Orleans. It needs infrastructure (physical and power) and it needs 15,000 or so employees (just a guess) who can come from anywhere in the surrounding region. New Orleans is tourist town, and this author is a bozo.

That said, untold billions will be spent on the city's recovery.

50 posted on 09/07/2005 9:48:21 AM PDT by green iguana
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