On Oct 25, 12:12 am, " wrote:
On Oct 25, 4:06 am, Too_Many_Tools wrote:



BILLIONS AND BILLIONS of dollars.

This is the type of tipping point that can push the economy into
recession.

TMT

I would think it would push the economy the other way. Billions and
Billions of dollars spent to rebuild. Lots of jobs for carpenters,
electricians, plumbers, landscape workers, lumber mill workers and
lumber jacks. Hotels and motels filled up. Overtime money for
firefighters and other emergency workers. More fire fighting
equipment ordered.

Can't think of any reason for a recession.

Dan

I would tend to disagree.

Where will the money come from to fuel this economic activity?

Credit has all but dried up.

The people who have lost their homes and businesses do not have the
cash sitting in the bank.

The banks will not loan them money without state and federal
guarantees.

The housing report just yesterday noted a drop of 8%.

You don't build more product in a market that has an excess...unless
you want to lose money...and the banks have been dealt massive losses
already with the majority yet to come.

It was also just recently reported that the size of loans needed to
finance this activity has essentially ceased.

I think the troubles of our neighbors here in California have just
begun.

And let us not forget that the rebuilding in New Orleans is years
behind....because the promised Federal aid has not happened.

Why should California be any different?

As for a recession....better do some homework, one is coming just in
time for the 2008 election year.

And that was before this disaster in California.

TMT