Hi Jim,
Needless to say, in addition to the huge toll in human suffering, the economic impact of the disaster in Japan is catastrophic and widespread.
It seems that Mother Nature is creating as much havoc and destruction as the derivative manufacturers.
Makes you wonder if there’s going to be anything left of civilization in another ten years!
Best regards,
CIGA Cavedweller
Economic hit from Japan quake seen up to $200 billion
By Leika Kihara
Wed Mar 16, 2011 7:22pm EDT
TOKYO (Reuters) – Japan’s devastating earthquake and deepening nuclear crisis could result in losses of up to $200 billion for the world’s third largest economy but the global impact remains hard to gauge five days after a massive tsunami battered the northeast coast.
As Japanese officials scrambled to avert a catastrophic meltdown at a nuclear plant 240 km (150 miles) north of the capital Tokyo, economists took stock of the damage to buildings, production and consumer activity.
The disaster is expected to hit Japanese output sharply over the coming months, but economists warned it could result in a deeper slowdown if power shortages prove significant and prolonged, delaying or even scotching the "v-shaped" recovery that followed the 1995 Kobe earthquake.
Most believe the direct economic hit will total between 10-16 trillion yen ($125-$200 billion), resulting in a contraction in second quarter gross domestic product (GDP) but a sharp rebound in the latter half of 2011 as reconstruction investment boosts growth.
"The economic cost of the disaster will be large," economists at JP Morgan said. "There has been substantial loss to economic resources, and economic activity will be impeded by infrastructure damages (like power outages) in the weeks or months ahead."
AIG Says Catastrophes to Cost Insurer $1 Billion in Quarter
By Andrew Frye – Mar 18, 2011 5:52 PM ET
American International Group Inc. (AIG), the insurer bailed out by U.S. taxpayers, said first-quarter catastrophes including the earthquake in Japan will cost the company about $1 billion.
The Japan quake is responsible for about $700 million of the sum, the New York-based insurer said yesterday in a statement. The total also includes claims from a temblor in New Zealand, floods in Australia and winter storms in the U.S. It excludes losses from participation in the Japanese Earthquake Reinsurance Co. which handles policies on residential dwellings.
AIG is increasingly reliant on property-casualty operations after selling its biggest non-U.S. life businesses to help repay a $182.3 billion bailout. The company is adding to investments in Japan with the planned purchase of the 45 percent of Fuji Fire & Marine Insurance Co. that it doesn’t already own.
“Our preliminary loss estimate will change as the industry losses from JERC for earthquake damage to personal dwellings become known,” Chief Executive Officer Robert Benmosche said in the statement.
