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DC to NE – Drop Dead!

Bruce Krasting's picture





 

 

 

If you’ve lived in NY for a long time, it is very hard to forget this now famous, headline. I think the Daily News will be able to reuse this title page again sometime over the next month or two. NY and NJ have stuck out their hands, and requested a very lumpy $80B from Washington to cover the cost of the clean up from Sandy.

 

 

Man is this bad timing. If granted, the cost to the Feds would be reflected in the 2013 budget. Good-bye to any hope of improvement in the overall deficit picture if this nut has to be paid. The $80b that has been requested is more than the revenue from a reversal of the +$250k Bush tax cut. It comes to $530 for every worker in America.

 

The 2011 Budget Control Act limits annual payments of disaster relief to $11B. So the $80B is going to require a special spending bill. That’s not going to be easy to achieve in Washington with all the Cliff/money issues that are now on the table.

 

NY’s big Democratic Senator, Chuck Schumer is very much in the middle of this. He knows he has problems with this request. From The Hill (Link).

 

“There is no doubt this is going to be a hard fight. It comes in the middle of strenuous negotiations around the fiscal cliff.”

 

Schumer is a weasel; he also had this to say about the process of getting the necessary legislation passed:

 

I am working to keep the quest for Sandy aid separate from the talks and to preserve a tradition of not offsetting disaster relief.

 

Separate? How can you keep $80B separate? The issue of not offsetting the cost of a disaster by reducing other spending is not going to come easy. Some Republicans are going to insist that there be cuts in the budget to offset a big portion of the Sandy clean up. An aide for Eric Cantor chimed in with this:

 

Cantor has made clear that needs beyond the $11 billion allotted by the Budget Control Act will be properly considered.

 

Properly considered? That is Washington speak for, “No way in Hell”.

 

There is an element of this that is going to prove difficult for the NE legislators. Why are the costs of Sandy so high? Answer:

 

Schumer wants to do away with limits such as a $31,000-per-home cap on repairs because of high home prices and expenses in the New York area.

 

Ah! That explains it. The numbers are big because of expensive beachfront homes. This is not going to sell very well, nor should it.

 

I’m looking for a big fight over this money, and I think it has to be part of the Fiscal Cliff discussions. It is too big a number to sweep under the carpet. There is the broader issue of what really should be the role of the Federal Government when weather turns bad. It’s way past time for a discussion of the costs of cleaning up properties that are in storms way. The folks who don’t live on ocean water, are subsidizing everyone who does.

 

 

 

If you live on the West Coast the weather report this morning is terrible. Another “Pineapple Express” is headed to land. The expectations are for winds north of 80mph and rainfall of as much as 12 inches. If that is what happens, expect to see pictures of houses being washed down the streets of Bel Air. A storm like this could easily cost $10B.

 

 


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Fri, 11/30/2012 - 02:16 | Link to Comment rwe2late
rwe2late's picture

 Instead of another article fanning the flames of ignorant prejudice, ZH should be publishing articles exposing how scams like the National Flood Insurance Program actually operate.

 The NFIP serves primarily to promote and underwrite banksters and real estate speculators to "develop", build and rebuild on marginally inhabitable land. Think of cheaply acquired "frontier" land worth less before "development".

 In this variant of disaster capitalism, as in others, any assistance to individual small players is only incidental in the big picture handouts for the big-time operators.

And by the way, most of the federally insured properties are in Florida and Texas.

http://en.wikipedia.org/wiki/National_Flood_Insurance_Program

 

Fri, 11/30/2012 - 01:03 | Link to Comment Pike Bishop
Pike Bishop's picture

Me to an LBI lifeguard: "Why did you whistle us out of the water?"

Lifeguard: "We spotted a school of fish in the water"

My then 14 yr old sister to the summer guard."GollyGeeWiz. But isn't that where they live, you fuckin' tourist?"

Just because millions of people decided they would live there anyway, doesn't mean that Nature is going to change. It means you just got lucky. 

Don't fret yourself. That money has the highest earnback per registered voter of anything that comes out of DC.

Thu, 11/29/2012 - 22:18 | Link to Comment stiler
stiler's picture

So we're blaming Obama and the weather for our demise, while knowing before and after the election, that you get what you deserve. In other words God controls these things, incl TOTUSes, so why don't we look at where the blame really lies?

1. Judgment begins at the household of God (the church)

2. and judgment ends with everyone else.

Persecution of the true church is coming to the west, it has to. The generation that allowed abortion will be the same that is the euthanised elderly. Oh Obama has plans, you betcha.

 

Thu, 11/29/2012 - 23:24 | Link to Comment TulsaTime
TulsaTime's picture

Nope, religion based arguments have no basis on this site, it disqualifies you from participation.  Come back when you grow a brain and the ability to reason.

Fri, 11/30/2012 - 00:32 | Link to Comment Orly
Orly's picture

Oh, so all your pseudo-scientific and global Zionist conspiracies are okay to talk about but it is brainless to talk about God?

How 'bout you come back when you're ready to accept any argument and not belittle it with your obviously superior intellect?

Who died and made you Tyler Durden anyway?

Fri, 11/30/2012 - 00:47 | Link to Comment Almost Solvent
Almost Solvent's picture

Amen.

 

God

No God

Democrat

Republican

 

 

Divide and Conquer 

Same as it eva was

Fri, 11/30/2012 - 01:52 | Link to Comment Deo vindice
Deo vindice's picture

Ruling God out of the equation of what is happening to America and the rest of the western world, is pretty foolish.

Considering that these societies were built on a Biblically-based concept. When people talk about the "Protestant work ethic" (not as commonly now, I admit), they were giving credenc to the idea by men like Martin Luther (Germany), John Calvin (Switzerland), John Knox (Scotland) and other Reformers who were preaching the need to 'reform' or restructure the Church and then society on scriptural principles.

God is still in control - and someone's opinion doesn't really change the fact. America is getting what she deserves by turning her back on Him.

Fri, 11/30/2012 - 05:18 | Link to Comment OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

The God ate my homework

Thu, 11/29/2012 - 21:51 | Link to Comment CheapBastard
CheapBastard's picture

Milking the taxpayers for all they have down to the bone.

Thu, 11/29/2012 - 21:41 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Large cities are not self-sustaining.  They have to rape the countryside to survive.  This is just another rape of the taxpayer. 

 

Thu, 11/29/2012 - 21:19 | Link to Comment nmewn
nmewn's picture

You know...there is a reason they call them barrier islands.

Thu, 11/29/2012 - 21:15 | Link to Comment dexter_morgan
dexter_morgan's picture

"Schumer is a weasel"  ...... duh, right up there with Dickhead Durbin.

Thu, 11/29/2012 - 18:42 | Link to Comment masterinchancery
masterinchancery's picture

This is utter nonsense.  Eliminate disaster relief, and particularly for anyone living on the shore.  You know Obama refused disaster relief for flooding in Iowa and Texas?!

Thu, 11/29/2012 - 22:10 | Link to Comment mendigo
mendigo's picture

you guys are clueless
most people living near the shore have flood and homeowners insurance and will be reimburse as the policies are written.
some mostly lower income people do not have proper insurance and will probably receive some aid but not generous handouts.
I do not know really but I imagine most of the disaster aid money being talked about is to help municipalities with costs that they incur such as cleanup and emergency services etc
but why spoil a good arguement

Thu, 11/29/2012 - 19:58 | Link to Comment brettd
brettd's picture

Ignored Vermont's recent floods and

flipped off Nashville's flood in 2010, where dozens of people died.

"Progressive" is the the pretty word for facist.

Thu, 11/29/2012 - 18:30 | Link to Comment disabledvet
disabledvet's picture

Spend all you want Chuck! When you're blowing through 25 billion a day in BORROWING I'd say your being a piker here! Now wave that sheet of paper that says "peace in our time" and I'll say we're all good to go!

Thu, 11/29/2012 - 17:57 | Link to Comment Bob Sacamano
Bob Sacamano's picture

It is consistent with "anyone's pain should be subsidized by others" mentality which only encourages risky behavior (e.g., building homes on the water or below sea level). 

We seemingly can not let people suffer any consequences of bad decisions.  Which breeds more irresponsibility - no personal responsibility. 

Insulating people from the full effects of risky behavior encourages risky behavior.   You only get smarter when you learn the hard way and feel the consequences.  

"But I didn't fully understand the risks."   That is the risk takers fault -- no one else.  Grow up and take responsibility for yourself.

Thu, 11/29/2012 - 21:25 | Link to Comment dexter_morgan
dexter_morgan's picture

Liberty, Freedom, responsibility - these are all hard and they ain't free, but lets face it, the majority in this country don't want hard............people always said America wiould never be socialist, the people were too independent and self-reliant.......D'OH

FORWARD! comrades

 

Thu, 11/29/2012 - 23:17 | Link to Comment bunnyswanson
bunnyswanson's picture

I would not agree that this is reflective of citizens without motivation to provide for themselves.  It requires connecting all of the dots, of course.  Your blanket statement is so off the target, I wonder if you have ADD.

 

This is not Kansas anymore.  This is a shift of assets and the money trail is clear to see.  Globalization is unfolding even if the MSM refuses to cover the story. 

 

http://www.secretsofthefed.com/tsa-saves-the-public-from-this-young-mother-video/

TSA “saves the public” from this young mother [VIDEO]

Factoring in the clear contempt being displayed toward the middle class in this country, the considerable loss at the hands of banking CEOs who are astoundingly still in their very lucrative positions, the Citizen's United decision leaving politicians hostage to big money interests, you have to consider this is a script in order to make the victims feel like the criminals.  The govt has been overthrown.  The quiet coupe d etat will be erased from history and all witnesses dealt with accordingly.  In 50 years, it will be like it never happened at all.  Just rumors and innuendos.  History has been rewritten. 

 

https://www.google.com/search?q=rothschild+castle+england&hl=en&newwindow=1&tbo=u&tbm=isch&source=univ&sa=X&ei=vyS4UKr5NqmtiQLpoIGoCA&ved=0CDEQsAQ&biw=1112&bih=558

Link to the homes the Rothchilds live in on google "Rothschild castle".  You do not live in a home like this and not rule the world.  Face it, you are too lazy to think beyond today's headlines because people in need disgust you.

Wed, 12/05/2012 - 14:18 | Link to Comment Bob Sacamano
Bob Sacamano's picture

The fact that globalization took so long to emerge and protected so many people from competition (e.g., the US) for so long does not make it bad.  Adapt. Figure out how to take responsibility for yourself.  Politicians are the only ones to blame if they are corrupted by money interests (no one forcing them to do anything).  Besides, do not look to government for your salvation. No one should rely on others for their "needs" (most of which are "wants") - to do so is greedy and selfish.

Thu, 11/29/2012 - 17:44 | Link to Comment Dungeness
Dungeness's picture

"Another “Pineapple Express” is headed to land".

It seems like these mega storms can now be predicted, or should I dare to say created?

Check out www.haarpstatus.com to see what HAARP is up to in real time.

Fri, 11/30/2012 - 00:27 | Link to Comment Orly
Orly's picture

Dude.  That's just dumb.  Trolling here to make us original conspiracy theorists look stupid.

Go away already.

Thu, 11/29/2012 - 17:31 | Link to Comment EARLPEARL
EARLPEARL's picture

question.....we need more money to run this country, who should we get this money from?  a. the poor people or  b. the richpeople

Thu, 11/29/2012 - 21:23 | Link to Comment dexter_morgan
dexter_morgan's picture

Your argument is faulty on several levels. You will NEVER get the money from the rich, they ain't rich because they're stupid enough to let yahoos like us scheme it away from them, and besides they OWN the politicians and corporations. Don't fall for the divide and conquer crap.

This was on ZH yestiddy - read it

http://www.oftwominds.com/blognov12/fiscal-cliff11-12.html

Thu, 11/29/2012 - 20:00 | Link to Comment nate
nate's picture

d. borrow it from ourselves

Thu, 11/29/2012 - 17:59 | Link to Comment Bob Sacamano
Bob Sacamano's picture

Your premise is incorrect -- we do not need more money to run this country. 

Thu, 11/29/2012 - 17:46 | Link to Comment Dungeness
Dungeness's picture

c. print the money

Thu, 11/29/2012 - 17:12 | Link to Comment shovelhead
shovelhead's picture

In about 30 years, some zygote is going to be paying for the Jersey Shore clean-up with a Uterus Use Tax.

FORWARD!

 

Thu, 11/29/2012 - 16:51 | Link to Comment csmith
csmith's picture

$80 billion is $3200 for every resident of the NYC metro area, not just the ones living on the flood plain.

WTF?

Thu, 11/29/2012 - 16:47 | Link to Comment raeb
raeb's picture

If the government can print all this counterfeit money, how come they are so upset when I do it?

Thu, 11/29/2012 - 16:22 | Link to Comment TahoeBilly2012
TahoeBilly2012's picture

You mean Federal Reserve debt zone number 1. New York sucks. Think they are so great and they are the people who let the damn Banker's ruin the Country. Of course they get paid well to do it. I call the Yankee's the "bailout" Yankee's as my A's kicked their asses in 4 straight the summer no matter how much funny money flows through that gawd foresaken town.

JFK has never been anything be a waypoint to Europe for me.

Thu, 11/29/2012 - 16:01 | Link to Comment woggie
woggie's picture

the beast is on the gobble
and all that matters is we're all headed for it's belly
http://youtu.be/ntmthFyaYzY

Thu, 11/29/2012 - 17:35 | Link to Comment jomama
jomama's picture

how many times you gonna post the same fucking thing (and then upvote yourself, to boot)?

http://www.zerohedge.com/search/user_comments?name=woggie

Thu, 11/29/2012 - 20:49 | Link to Comment willwork4food
willwork4food's picture

jomama sucks and were all gratefull!!

FOR WOGGIE!!

 

 

 

(i couldn't resist...)

Thu, 11/29/2012 - 16:01 | Link to Comment Random_Robert
Random_Robert's picture

Hey New York!

 

I know the solution that is GUARANTEED to solve your budgetary shortfall (courtesy of your heros in Washington):

 

1) Raise the taxes on the rich (like maybe imposing a 25% sales tax jurisdiction around 5th Ave)

2) rinse

3) repeat

 

 

 

 

Thu, 11/29/2012 - 16:13 | Link to Comment NotApplicable
NotApplicable's picture

Bloomberg Tax!

After all...

"He didn't build that!"

Thu, 11/29/2012 - 15:56 | Link to Comment Random_Robert
Random_Robert's picture

Any talk of budgetary shit-storms is all false news (aka propaganda)

 

All freedom comes from the barrel of a loaded gun

All money comes from the barrel of a loaded printed press

All legality comes from the barrel of a loaded politician

 

Step outside into the real world - if the weather is great, then enjoy the day. If the weather sucks, then get the fuck out of Dodge...

 

 

Thu, 11/29/2012 - 16:12 | Link to Comment butchee
Thu, 11/29/2012 - 16:27 | Link to Comment cougar_w
cougar_w's picture

Heh. Yeah we're gonna get pulverized around here. You cannot believe how warm it is, really creepy.

I wonder when we get an actual Pacific typhoon? You know, something from off Mexico doing a left-hook and plowing into Los Angeles at 115 mph? Imagine all the fucked up shit that's going to create.

Can't be too far off in the future.

Thu, 11/29/2012 - 16:47 | Link to Comment butchee
butchee's picture

I was in Silicon Valley in '86 for the Pineapple storms....It was epic and unforgettable.  27 inches in three days if my memoriy serves me.  Riding my cyclocross bike through Huddart park and down Purrissima creek to the coast and back through the closed HWY 84, running (with my bike on my shoulder) over the mudslides was the most fun I ever had on my bike!

Thu, 11/29/2012 - 19:31 | Link to Comment Miss Expectations
Miss Expectations's picture

2 cyclonic lows inside a cyclonic low...check out what's coming (at about the:57 mark)

http://www.youtube.com/user/suspicious0bservers?feature=results_main

Fri, 11/30/2012 - 05:20 | Link to Comment OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

I've had a high cyclonic but never a low cyclonic

Thu, 11/29/2012 - 15:52 | Link to Comment monad
monad's picture

Insurance bailout? I'm sure the lenders required homeowners to carry insurance. Ploy: ask for a ridiculous number, then people won't be pissed off when a slightly smaller amount is stolen. You will see this play out in the pump price: they knock it up well past the next dollar, then they back it down to the round dollar and people are relieved. Just like when they get a little of their own money back in the form of a tax refund. When congress does charity with their own money, I'll be impressed. When they 'appropriate', that's not charity.

Thu, 11/29/2012 - 16:20 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Insurance doesn't cover all of this, e.g. flooding.  These properties have mortgages, so if the homeowners cannot pay (LOL), it comes back to the banks.  Then the banks turn to.............

Thu, 11/29/2012 - 20:44 | Link to Comment willwork4food
willwork4food's picture

And there you go. I doubt many with flood damage will leave, but what if you just don't have the money to repair all the damage? I'd fucking leave the property & do the  jingle mail too. Fuck the banks. The loans are a bail out to the banks and the owners don't get shit to help them rebuild. Makes sense to me.

Thu, 11/29/2012 - 15:40 | Link to Comment Hannibal
Hannibal's picture

Why stop here:

Give every adult a debit card, funded each month with $4,000, no strings, except that it MUST be spend.

Thu, 11/29/2012 - 15:51 | Link to Comment Gordon Freeman
Gordon Freeman's picture

Yeah--the economy would take off like an artillery shell, and it wouldn't be any worse from a fiscal POV

Thu, 11/29/2012 - 23:31 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Not necessarily. 

People might spend the $4000 shorting Apple.

Thu, 11/29/2012 - 15:34 | Link to Comment sangell
sangell's picture

Thunderstorm destroys your house. Your problem. Hurricane destroys 10,000 houses. Federal governments problem.

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