Dubya's action on the Tsunami today was admirable. He went from a Zero and a Nero, to a Hero in only a few days.
Still, it will be VERY interesting to see how the Tsunami plays out over time in the financial markets.
The clean up could take a while.
But then, you have to wonder if there will be CONSEQUENCES FOR INSURANCE COMPANIES AND RE-INSURANCE COMPANIES.
After all some of these disaster locations were quite well developed. It wasn't all "grass-huts" and beach shacks out there......there were many many SUBSTANTIAL BUILDINGS DAMAGED by this Tsunami, and I have to believe that those buildings were insured in some way.
After all, this destruction path is basically two miles wide and 20,000 miles long!
And, that's a lot of square miles if you do the math!
I can't believe that the beach front property in South Asia was not considered PRIME LOCATIONS.
To be sure, Insurance and Re-insurance at the higher levels is international. And eventually it all feeds back into the big re-insurers and the major money centers, like London and New York.
COULD THIS TSUNAMI YET HAVE A FINANCIAL IMPACT ON THE BIG MONEY CENTER
BANKS AND INSURANCE COMPANIES?
AND ON THE STOCK AND BOND MARKETS?
MY HUNCH IS THAT WE HAVEN'T SEE THE LAST OF THE FALL OUT FROM THE
ASIAN TSUNAMI IN NEW YORK AND LONDON.
BUT THE GLOBAL ECONOMY SURELY DOESN'T NEED ANYMORE "COFFIN NAILS" THIS YEAR!
WATCH FOR TSUNAMI FALLOUT:
THERE COULD BE A "FINANCIAL TSUNAMI" HEADING FOR THE MAJOR RE-INSURERS AROUND THE WORLD; AS YET UNDECTECTED ON OUR EARLY WARNING DEVISES.
