Storm of economic impacts accompanies hurricanes
For two weeks in a row, severe hurricanes and tornadoes passed through a geographic area containing a huge portion of the U.S. gross national product. The destruction can wreak havoc in mind numbing ways. Transportation routes become impassable causing delivery delays. Warehousing and goods are destroyed and rendered useless. Agricultural products, energy production and manufacturing are stalled, even destroyed.
As a result, the price of goods increases, threatening already unsteady inflation numbers. Jobs are lost and home prices can rise as rebuilding becomes vital. Long after hurricane headlines are blown off the front pages, these and other effects continue to ripple. Wildfires, droughts and extreme weather out west are only worsening economic conditions, leaving little optimism that our efforts to mitigate greenhouse gas emissions are adequate to reduce the causes of climate change.
Florida homeowners running for coverage
Florida demographics are affected by a homeowners insurance crisis caused by a variety of issues. Sources agree that up to 12% of Florida homeowners are seriously considering an out-of-state move due to insurance issues. As more and more insurance companies leave the state, residents are paying from 24% to 37% more for annual premiums. Climate issues have resulted in increased storm damage, lawsuits by premium holders have added to insurer costs and issues surrounding fraud by adjusters have led to state intervention. Insurance might change how the citizens view the Sunshine State.
Inflation eases in September
Though not reflecting the massive destruction Helene and Milton have left in their wake, the Labor Department released data indicating consumer prices eased to a new three-year low, rising only 2.4% from a year earlier in September. Stock index futures fell on the news but made new highs on Friday. Friday morning’s producer price index, a measure of wholesale level inflation, was unchanged.
Friday’s markets
CME midday prices: Gold for December delivery: $2,678 per troy ounce, silver $31.81 per ounce, with November Crude Oil at $75.40 per barrel. November soybeans were at $10.06 per bushel, December corn at $4.15 with December wheat at $5.95. December cattle $187.75 per hundred pounds, Dec hogs, $77.65.
Opinions are solely the writer’s. Walt Breitinger is a commodity futures broker in Valparaiso, Ind. He can be reached at (800) 411-3888 or www.indianafutures.com.
Futures and options trading involves substantial risk of loss and is not suitable for all investors. Clients may lose more than their initial investment. Past performance is not indicative of future results. This is not a solicitation of any order to buy or sell, nor does it provide any recommendations in regard to the market. Information contained herein is obtained from sources believed to be reliable, but cannot be guaranteed as to its accuracy or completeness.