Hurricane Sandy couldn’t have come at a worse time. The U.S. economy appears to be contracting, and the fourth quarter holiday shopping season in the most populated area of the country has been interrupted. Now, folks are more worried about pumping sewage laced water out of their towns than buying a new Apple iPod. Money is going to be diverted to buy generators and paint, not electronics and clothing. New York and New Jersey are two of the most indebted states in the union. They have a combined $600 billion in debt. There is no wonder why both Governor Christy and Governor Cuomo are asking the Federal government to pick up 100% of the tab of rebuilding the infrastructure. There will be many who will find out homeowners policies are not covering flood damage. The cost has been estimated to be around $50 billion. Hurricane Katrina cost more than $100 billion, and it is far less populated than the Northeast coast. My sources say when all is said and done, the tab will exceed $200 billion. This is a giant drag on the fourth quarter in a very weak economy. There will be winners and losers in the retail sector. Expect some of the losers to go bankrupt.
Meanwhile, the U.S. is going to hit the $16.39 trillion debt ceiling. More money printing will be needed to rebuild. The only question I have is what straw will finally break the back of the U.S. dollar and bond market. Once again, the debt ceiling will be raised, but will the ratings agencies cut U.S. debt again? We will see.
Finally, the Libya 9/11/12 attack is not going away. There are charges of a White House cover-up. Reports and emails are being uncovered that say the Obama administration knew there was a serious problem with al-Qaeda and did nothing. There are charges that help was repeatedly requested, only to be denied. Who gave the stand-down order? There are reports that there was a live video feed into our national security centers, and they stood by and let four Americans die, including a U.S. Ambassador. I saw a billboard posted on the internet recently that said the words “Obama” and “Coward.” We will not have all the answers before Election Day, but the truth will come out and I suspect it will be very ugly.
Join Greg Hunter as he gives his analysis of these stories and more in the weekly news Wrap-Up.
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.