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Ologhai Jones

The Floods: Winners And Losers

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Ridiculous. In that case the Japanese earthquake, tsunami and nuclear meltdown wasn't so bad for that country as it created some winners.

http://en.ria.ru/world/20110314/163001813.html

Japan's powerful earthquake and tsunami have sustained possible economic damage of $60-120 billion, but recovery efforts could bring about GDP growth by 0.2-0.3 percentage points in 2011, Citigroup analysts said on Monday.

Kiichi Murashima, an analyst with Citigroup, said the forecast was calculated for the fiscal year to begin in April.

In the fiscal year in question, Japan's economy could grow by 1.9.-2.1%, and could rise by 1.7% in January-December 2011, Murashima said. These figures include inevitable downturn in the first and early second quarter. Citi added that industrial production in Japan would fall by at least 1-2% in March.

Analysts in VTB Capital, a state-run investment bank, agreed that GDP growth in Japan would be negative - at least in the first and second quarters. But massive reconstruction projects would revitalize the economy.

The Japanese currency is likely to remain stable at a level of 82-84 yen to the dollar, Murashima said.

You see you have no idea what you are talking about....

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Loser? Dave's hair appears to have gone white with worry. :lol:

head_2825877b.jpg

What's that hatch on his back in the second pic? Is that where they shovel in the sound bites?

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I would have said East Anglia was a winner from the floods. Little or no damage, within striking distance of London, and no houses falling off cliffs or into sinkholes. Prices will go to the moon here now.....

Are you very close to the land? :blink:

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Floods are a winner for the economy <_<

For as long as QE is on and money is no object, all good news is good news and all bad news is better news.. That is what funny money can do.. Very soon we will be introducing 'bad' events so they can produce 'good' results ... Wars, shortages, disasters... Its a slippery slope

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This could have serious implications for the insurance industry which has already been negatively impacted by financial repression keeping bond yields low. Disasters like this are bound to stress them.

Still - I wonder how many CDSes have been written out by the City boys against said insurers? If it's been enough to threaten the banks who issued them, I'm sure a taxpayer-funded bailout can be arranged.

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I would have said East Anglia was a winner from the floods. Little or no damage, within striking distance of London, and no houses falling off cliffs or into sinkholes. Prices will go to the moon here now.....

My House is at the top of a hill in East Anglia so I'm in the winners camp ;)

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The insurance company bosses had a meeting at Downing Street yesterday. Apparently Cameron wants all insurance policy holders to foot the bill (I think a £10 levy on each policy).

http://www.telegraph.co.uk/comment/telegraph-view/10646414/Many-rivers-to-cross-over-flood-insurance.html

Each home that was likely to be affected by floods would pay an extra premium, up to a certain cap; there would also be a levy of £10.50 on every insurance policy in the country, meaning that the rest of the nation would be subsidising those homes built on flood plains. The scheme would apply only to houses built before 2009, to discourage construction in at-risk areas.

Sounds like a similar thing is happening in the US:

http://www.thewire.com/politics/2014/02/you-are-subsidizing-fancy-beach-house-will-be-destroyed-flood/358212/

We're all socialists now......

Edited by Eddie_George

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The insurance company bosses had a meeting at Downing Street yesterday. Apparently Cameron wants all insurance policy holders to foot the bill (I think a £10 levy on each policy).

...

We're all socialists now......

I thought the main selling point of insurance was to spread misfortune equally--so that you avoid being one of the unlucky few who are financially overwhelmed when terrible stuff happens to them.

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I thought the main selling point of insurance was to spread misfortune equally--so that you avoid being one of the unlucky few who are financially overwhelmed when terrible stuff happens to them.

Insurance is about pricing risk. Well, it used to be. Now the feckless who bought houses in flood zones get to pay lower premiums thanks to the sensible ones who didn't.

Nothing new in this country though. The same mantra as privatise the profits and socialise the losses.

Edited by Eddie_George

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Insurance is about pricing risk. Well, it used to be. Now the feckless who bought houses in flood zones get to pay lower premiums thanks to the sensible ones who didn't.

Nothing new in this country though. The same mantra as privatise the profits and socialise the losses.

I can't see flooding helping the memorability. I recall seeing a cheap house for sale in the Somerset levels earlier this year, cash buyer price - it was an old farm house. I seem to recall that the listing said cash buyers only.

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This could have serious implications for the insurance industry which has already been negatively impacted by financial repression keeping bond yields low. Disasters like this are bound to stress them.

Still - I wonder how many CDSes have been written out by the City boys against said insurers? If it's been enough to threaten the banks who issued them, I'm sure a taxpayer-funded bailout can be arranged.

The floods in themselves would be unlikely to be terminal for any insurer. Most will have reinsurance contracts with the big RE firms.

Do you really think that the banks are writing unhedged, uncollateralised CDS contracts? No one has been doing that since AIG went belly up.

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