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Guest Post: The Tremendous Economic Benefits Of Superstorm Sandy

Tyler Durden's picture


Submitted by Jim Quinn of The Burning Platform

The Tremendous Economic Benefits Of Superstorm Sandy

The public relations propaganda campaign to convince the ignorant masses that Sandy’s impact on our economy will be minor and ultimately positive, as rebuilding boosts GDP, has begun. I’ve been hearing it on the corporate radio, seeing it on corporate TV and reading it in the corporate newspapers. There are stories in the press that this storm won’t hurt the earnings of insurers. The only way this can be true is if the insurance companies figure out a way to not pay claims. They wouldn’t do that. Would they?

It seems all the stories use unnamed economists as the background experts for their contention that this storm will not cause any big problems for the country. These are the same economists who never see a recession coming, never see a housing collapse, and are indoctrinated in Keynesian claptrap theory.

Bastiat understood the ridiculousness of Kenesianism and the foolishness of believing that a disaster leads to economic growth.

Bastiat’s original parable of the broken window from Ce qu’on voit et ce qu’on ne voit pas (1850):

Have you ever witnessed the anger of the good shopkeeper, James Goodfellow, when his careless son has happened to break a pane of glass? If you have been present at such a scene, you will most assuredly bear witness to the fact that every one of the spectators, were there even thirty of them, by common consent apparently, offered the unfortunate owner this invariable consolation—”It is an ill wind that blows nobody good. Everybody must live, and what would become of the glaziers if panes of glass were never broken?”

Now, this form of condolence contains an entire theory, which it will be well to show up in this simple case, seeing that it is precisely the same as that which, unhappily, regulates the greater part of our economical institutions.


Suppose it cost six francs to repair the damage, and you say that the accident brings six francs to the glazier’s trade—that it encourages that trade to the amount of six francs—I grant it; I have not a word to say against it; you reason justly. The glazier comes, performs his task, receives his six francs, rubs his hands, and, in his heart, blesses the careless child. All this is that which is seen.


But if, on the other hand, you come to the conclusion, as is too often the case, that it is a good thing to break windows, that it causes money to circulate, and that the encouragement of industry in general will be the result of it, you will oblige me to call out, “Stop there! Your theory is confined to that which is seen; it takes no account of that which is not seen.”


It is not seen that as our shopkeeper has spent six francs upon one thing, he cannot spend them upon another. It is not seen that if he had not had a window to replace, he would, perhaps, have replaced his old shoes, or added another book to his library. In short, he would have employed his six francs in some way, which this accident has prevented.

Economists and MSM faux journalists don’t want you to think for yourself. If you just consider some basic situations that are happening or will happen to average people throughout the Northeast, you’ll understand that this storm will have a huge NEGATIVE impact on the economy.

  • Small stores, restaurants, and thousands of other businesses were shut down for at least two days and some will be closed for a week or more. These businesses employ hundreds of thousands of hourly workers. These businesses earned no revenue, therefore their profits were reduced. The hourly workers did not get paid. Therefore, they have less money to spend for clothing, tech gadgets, food, etc. Both the business and the workers will pay less taxes to the government.
  • The reduced revenue at retailers due to being closed and reduced spending by customers will cause them to layoff more workers or in the case of smaller retailers, go out of business altogether.
  • The damage caused by the storm will result in insurance companies providing billions in claim payouts. This will reduce their earnings, causing them to layoff employees in order to meet their quarterly earnings expectations. Some smaller insurance companies may go out of business.
  • Anyone with a tree down in their yard, damage to their fence, roof damage, etc that is not covered by insurance will have to spend hundreds or thousands of dollars on fixing the damage. This is money they won’t spend on Christmas presents next month.
  • Many people do not have the savings to fix the damage to their houses. They will put the costs on their credit cards paying 15% interest to the criminal Wall Street cabal.
  • Politicians and government drones will declare we must rebuild and help those in need. They will approve $20 billion of “Federal” disaster relief. But, we all know the $20 billion does not exist. It will be borrowed from future generations. It will just be added to our current $16.3 trillion tab. We will pay interest on this $20 billion FOREVER. The true cost of the $20 billion relief will be $30 billion after decades of accumulated interest. It’s like an ignorant American taking a $20,000 vacation, putting it on their credit card and making the minimum payment for eternity.

You may realize that the only beneficieries of this tragedy will be the issuers of debt. That’s right, the criminal Wall Street banks will earn more interest as desperate Americans have to use credit cards to survive. The destroyed automobiles will be replaced with autos financed by Wall Street. Businesses and homeowners will go further into debt making repairs.

Considering the country has been in recession since June, this disaster will be the final straw that breaks the camel’s back. The powers that be will try to keep the broken economy fallacy going as long as they can, but anyone capable of thinking realizes the country is in the shitter. The mood continues to darken. The storm clouds continue to swirl and a bad moon is rising. But don’t worry, unnamed economists say everything is just fine. Fix that window and boost the economy.


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Wed, 10/31/2012 - 23:20 | 2936608 gdogus erectus
gdogus erectus's picture

The only Sandy stimulus he's going to get is in his ass crack from visiting the beach.

Wed, 10/31/2012 - 23:27 | 2936612 markmotive
markmotive's picture

Don't tell me PK doesn't know about this...can't be happening.

Peter Schiff on Broken Window Fallacy:

Wed, 10/31/2012 - 23:42 | 2936655 vast-dom
vast-dom's picture

PhD KrugTroll

Wed, 10/31/2012 - 23:54 | 2936675 old naughty
old naughty's picture

"...Not cause any problem for the country..."

That's just like morning after 3.11 tsunami, Japanese e-con-o-mist came out telling the world "nuclear is good and booming, not causing any problem..."

And you don't need a nobel prize to do/say that !

Has he got a hand in declaring TS just before Sandy landed? Lucky/evil.

Thu, 11/01/2012 - 00:10 | 2936695 salvadordaly
salvadordaly's picture

I believe that was "Bagdad Bob"! I could be wrong?

Thu, 11/01/2012 - 00:49 | 2936753 redpill
redpill's picture

Paul Krugman is an arrogant dumbfuck who should be kicked in the crotch repeatedly. Then we'll ask if his payments to the plastic surgeon who has to try to reassemble his twig and berries represent a net economic positive. Fucker.

Thu, 11/01/2012 - 01:03 | 2936778 economics9698
economics9698's picture

Damn redpill remind me not to piss you off.

Thu, 11/01/2012 - 01:32 | 2936803 macholatte
macholatte's picture



Doesn't anybody draw upon historical precedent anymore? Like, uh, is this the first major hurricane or natural disaster in the last, say, hundred years? Do we need to guess at what economic impact it will have? Gimme a break!


A word to the wise ain't necessary - it's the stupid ones that need the advice.
Bill Cosby


Thu, 11/01/2012 - 07:00 | 2936928 GetZeeGold
GetZeeGold's picture



That picture of Krugman makes him almost look sane.......almost.

Thu, 11/01/2012 - 08:12 | 2937046 aint no fortuna...
aint no fortunate son's picture

In my email from BAC last night - and I live in fucking FLORIDA!

Dear Valued Bank of America Customer,

We hope this message finds you and your family safe and well.

While the actual storm may be winding down, it's often in the days after that its effects continue to be felt, as personal finances take a back seat to clean up and repair.

We're here to help in any way we can, one customer at a time. If you or someone you know was affected by severe storms and floods, our Customer Assistance Program can help. You may qualify to:

  • Receive credit line increases on your existing Bank of America Visa® card and MasterCard®.
  • Modify or extend payments on loans, credit cards or lines of credit.
  • Receive special assistance with lost, missing or late loan or card payments.
  • Avoid early withdrawal penalties on bank certificates of deposit (CDs).
  • Receive a refund on any overdraft, non-sufficient funds (NSF) and non-Bank of America ATM fees incurred as a result of storm conditions.

Then there was lot's of touchy feely caring sensitive bullshit after that.

Fuck you Moynihan.


Thu, 11/01/2012 - 08:30 | 2937092 aldousd
aldousd's picture

This is classic!

Thu, 11/01/2012 - 09:06 | 2937178 Big Slick
Big Slick's picture

Line of the night is from a Coney Island looter (who sums up our thoughts about Timmy and The Bernanke perfectly):

"Look, they've been looting our wallets for too long," said a young male who claimed he helped himself to a TV at the Rent-A-Center.   “It's about time we start taking this sh—back," the youth, who identified himself as Jesse James, told the Daily News.

Read more:



Thu, 11/01/2012 - 10:22 | 2937393 steve from virginia
steve from virginia's picture



Krugman has nothing to say about the hurricane other than a report about him trapped in his own house by a downed power line.


Certainly nothing about any 'broken windows' ...


see for yourselves:

Thu, 11/01/2012 - 13:37 | 2938091 Bay of Pigs
Bay of Pigs's picture

Yeah Steve, he's a real oracle of truth and enlightenment isn't he?

We're all well versed with Krugmans economic heresy.


Thu, 11/01/2012 - 01:35 | 2936805 Michaelwiseguy
Michaelwiseguy's picture

I think it will be hilarious when Progressers and Climate Changers get increases in their electric and tax bills in the democrat states to pay for this natural disaster, enhanced by Geo Engineering.

Thu, 11/01/2012 - 06:50 | 2936921 booboo
booboo's picture

Yes and of course Cuomo just announced that the Hurricane Deductible would not be allowed to kick in on his precious "yawkers" so those increases WILL take that into consideration. The insurers will get their pound of flesh, if not off the ass, then the face will do.

But back on subject, where does the broken window theory come into play here, a 3% deductible is greater then a fixed $1000 deductible? but, but but I thought more expenditures on broken windows (insurance deductibles) is Goooood!

Thu, 11/01/2012 - 07:08 | 2936931 negative rates
negative rates's picture

Its really a poor interpretation of a bad thing. Here is the reality in a different form. If everyone in the northeast came down with a deadly disesae, (broken house say) and needed expensive health treatment, it would do wonders for the economy. But the overall condition of the patient remains the same as the cost of such an operation reduces the discretionary spending or increases the persons debt. This is why today's young healthy people, have to pay for the elders bad choices of yesterday now, so they can have a few extra years of life extension after polluting and damaging the what becomes the living dead. Soon to be greatfully dead.

Thu, 11/01/2012 - 05:36 | 2936890 ebworthen
ebworthen's picture

redpill: Agreed!

Krugman is the potato with a beard.

He needs to be peeled, baked, topped with butter, sour cream and chives then served to senior citizens who have lost 50% of their savings since 2008.

Dumb fucking potato!

350 Degrees!

One Hour!

Sour Cream!


Thu, 11/01/2012 - 07:52 | 2937018 NorthPole
NorthPole's picture

ok, but pull out his beard first.

Thu, 11/01/2012 - 00:15 | 2936701 flacon
flacon's picture

I've been beating my head silly trying to get my older brother to understand the simple concept of the broken window fallacy. He still clings to the notion that "some productive good will arise because demand is stimulated and overall it is good for the economy". What you have to know is that he has a PhD from an accredited ivy leage university. Does he have any hope?

Thu, 11/01/2012 - 00:28 | 2936720 akak
akak's picture

I still think every so-called "Ivy League" (would that be poison ivy?) university should have signs over their gates declaring "Abandon (moral and intellectual) hope, all ye who enter here".

Thu, 11/01/2012 - 01:01 | 2936771 economics9698
economics9698's picture

"He has a PhD from an accredited ivy league university."  That’s a fucking heavy dose of brainwashing from the Yids, probably no hope for him.  Sorry dude you lost your brother.


Thu, 11/01/2012 - 04:07 | 2936854 Acet
Acet's picture

Modern teaching teaches the same mental posture as modern management uses: is all about the visible and easilly measurable - if you can't see it or it's hard to gage it can safelly be ignored.

Hence things like "opportunity cost" are ignored, just like things like worker morale, customer loyalty and tail risks (the "known unknows" and the "unknown unknowns").

And so the economy is in the shitter ...



Thu, 11/01/2012 - 01:25 | 2936788 cranky-old-geezer
cranky-old-geezer's picture



He still clings to the notion that "some productive good will arise because demand is stimulated and overall it is good for the economy".

It's only good for banks when this artificial "stimulus" is funded with borrowed money.

Taking the broken window theory to its logical extreme, the government could borrow 10 trillion dollars and do all the infastructure maintenance / repair / upgrades needed across America.  It would create lots of jobs, boost GDP, boost tax revenues, all that.

Sounds great doesn't it?   

But printing 10 trillion dollars and dumping it into the economy would cause massive inflation, maybe hyperinflation, and might kill the dollar once and for all. 

You can't run an economy on borrowed / printed money very long.  It causes inflation, then hyperinflation, then destroys the currency eventually.

Krugman and other Keynes worshippers never talk about that part.  They never mention how the currency is being debased from all the printing.

Hell let's go all the way.  Borrow a hundred trillion and give everybody 30 billion dollars to spend however they want.  Now that's stimulus.

But printing a hundred trillion dollars and dumping it into the circulating money supply would destory the dollar instantly.  It would be Zimbabwe overnight, where 30 billion might buy a loaf of bread.

Thu, 11/01/2012 - 01:32 | 2936804 Clowns on Acid
Clowns on Acid's picture

flacon - kick your brother in the balls. When the fat feck gets up to chase you, start running and shout "I was just trying to get you to exercise".

Thu, 11/01/2012 - 01:37 | 2936808 glenlloyd
glenlloyd's picture

Just ask him whether he'd enjoy paying $1000 to have a fallen tree hauled off or spend it on something else of his own choosing.

How people cannot understand how the BW fallacy works is beyond's like people I know who say they feel more secure now than they did four years ago but now have about $50k more in can any sane person say that?

Thu, 11/01/2012 - 01:44 | 2936812 dogbreath
dogbreath's picture

I read some birth order psycology book one time and it said that first borns were the bag likkers of the status quo of the family.  Of course they have power over you and more so depending on the age difference.  He went all in on the status quo.   sucks to be him.

Thu, 11/01/2012 - 02:39 | 2936832 xtop23
xtop23's picture

actually it does stimulate growth somewhat. the problem is the law of diminishing returns and the unavailability of that capital for lasting investment / technological innovation / et al. its the same story with all stimulus packages. government does only one thing with capital and that is fuck up ( whether by idiocy or design ) where its allocated.

Thu, 11/01/2012 - 05:16 | 2936876 BeaverFever
BeaverFever's picture

Krugman's so excited that he's giving free handjobs to anyone named Sandy for the next 2 weeks. For an appointment please call 1-800-Me-Sandy.

Thu, 11/01/2012 - 08:30 | 2937096 Debugas
Debugas's picture

ask him to pay you in advance - first for digging the ditch then for filling it up. Upon receiving the money do nothing but tell him you have already done all the work (the result is that nothing changed right ?)

Thu, 11/01/2012 - 10:32 | 2937422 BooMushroom
BooMushroom's picture

Tell him that for a small fee of $1, you will go to his house, and break out all the windows! And for an additional $5, you will go inside, take half his stuff, and mess up or break everything else.
$6 is such a small price to pay for such stimulus.

If he balks, tell him you are so concerned about his finances that you will even do it for free.

Thu, 11/01/2012 - 11:01 | 2937521 monoloco
monoloco's picture

It's no different than the dumbfucks who think war is good for the economy.

Thu, 11/01/2012 - 00:10 | 2936694 Bear
Bear's picture

Love the new designation ... Dr. Troll

Wed, 10/31/2012 - 23:26 | 2936613 Eireann go Brach
Eireann go Brach's picture

I only had one request from the Storm Sandy, that Paul Krugman was washed out to sea!

Wed, 10/31/2012 - 23:32 | 2936632 NidStyles
NidStyles's picture

Hard to remove stains never just float off...

Wed, 10/31/2012 - 23:50 | 2936666 akak
akak's picture

It takes more than a shower to get rid of a tick.

Thu, 11/01/2012 - 00:33 | 2936735 Manthong
Manthong's picture

I submit that toxic sludge should be incinerated, not dumped in the ocean.

Thu, 11/01/2012 - 00:14 | 2936697 RockyRacoon
RockyRacoon's picture

Krugman seems to be the poster boy here, but quotes are lacking.  Wouldn't it be fair to at least offer a qualifying remark by the goofy bastard -- just to be equitable.  I'm not saying there aren't any quotes, just none here, where they should be.  Lest I be misunderstood, he's not on my list of economic heroes.  I just don't think the article is fleshed out without a connection.  Poor journalism, great sensationalism.

Thu, 11/01/2012 - 00:17 | 2936706 knukles
knukles's picture

Same noted and concluded

Ridicule for pertinent reasons is one thing, judgmentalism for self aggrandizement is another.

Thu, 11/01/2012 - 01:03 | 2936774 Manthong
Manthong's picture

We know what Jim meant, but for the record, Bastiat didn’t know anything about Keynesianism per se because he preceded Keynes by the better part of a century.


“OK, Paul Krugman has not claimed that Hurricane Sandy will make us rich or revive the economy, but..”

“Krugman actually did succumb to this fallacy 11 years ago, as points out:

The ultimate example of broken-window lunacy comes from Nobel Prize-winning economist Paul Krugman. On September 14, 2001, Krugman used his New York Times column to lecture Big Apple residents about the upside of the utter destruction of the World Trade Center and a good chunk of lower Manhattan just a few days earlier: "Now, all of a sudden, we need some new office buildings...the destruction isn't big compared with the economy, but rebuilding will generate at least some increase in business spending.":

In my book, that qualifies him for Bastiatic ridicule until they cart his philosophical carcass off to the landfill of economic history.

Thu, 11/01/2012 - 01:11 | 2936785 Cathartes Aura
Cathartes Aura's picture

if you're looking for a fleshed out thread, probably need to head on over to the "Ethics of Halloween" piece. . .

Thu, 11/01/2012 - 01:29 | 2936801 cranky-old-geezer
cranky-old-geezer's picture




Didn't Krugman say something about an alien invasion being great for the economy?

Quoting a madman is good journalism?

Thu, 11/01/2012 - 06:37 | 2936916 Mike in GA
Mike in GA's picture

The picture of the Krugman was bad enough; I don't need no stinkin' quotes!

Thu, 11/01/2012 - 08:14 | 2937057 Jim Quinn
Jim Quinn's picture

“This is hard to get people to do, much better, obviously, to build bridges and roads and healthcare clinics and schools. But my proposed, I actually have a serious proposal which is that we have to get a bunch of scientists to tell us that we’re facing a threatened alien invasion, and in order to be prepared for that alien invasion we have to do things like build high-speed rail. And the, once we’ve recovered, we can say, “Look, there were no aliens.” But look, I mean, whatever it takes because right now we need somebody to spend, and that somebody has to be the U.S. government.”

Paul Krugman

“Alan Greenspan needs to create a housing bubble to replace the NASDAQ bubble.”

Paul Krugman

“It seems almost in bad taste to talk about dollars and cents after an act of mass murder. Nonetheless, we must ask about the economic aftershocks from Tuesday’s horror. These aftershocks need not be major. Ghastly as it may seem to say this, the terror attack – like the original day of infamy, which brought an end to the Great Depression – could even do some economic good.”

Paul Krugman – 9/14/01

 ”We have a world-class budget deficit not just as in absolute terms, of course — it’s the biggest budget deficit in the history of the world — but it’s a budget deficit that, as a share of GDP, is right up there.”

Paul Krugman warning about Bush’s $400 billion deficit in 2004

Thu, 11/01/2012 - 11:26 | 2937591 RockyRacoon
RockyRacoon's picture

Better late than never, Mr. Quinn.   I guess you assumed that we were all on the same page.  For regular ZH readers that would be the case, but your literary creation would have been much more credible with the quotes included.  Thanks for posting them.

Thu, 11/01/2012 - 12:37 | 2937825 Jim Quinn
Jim Quinn's picture

It was an article written in 30 minutes. It isn't a literary creation. It wasn't about Krugman. I don't give a shit about your opinion of credible. Try not being a pompous ass.

Sun, 11/04/2012 - 21:59 | 2946803 RockyRacoon
RockyRacoon's picture

Maybe you should allow more time to focus on your future pieces?  My criticism was directed at the piece posted, that's all.  And my criticism remains valid.  If Krugman wasn't the poster boy why is his ugly mug featured?  Since I don't follow you around like a wide-eyed devotee I can't be expected to read between the lines.  I only judge the black part.  You did return with the missing pieces, and I thanked you for that.  I see that  you added some bolstering Krugmanese to your website post of this piece.  Wonder why?

Oh, and being a pompous ass is my raison d'etre

Sun, 11/04/2012 - 22:02 | 2947443 nmewn
nmewn's picture

Fucking dick.

Tue, 11/06/2012 - 22:04 | 2953860 RockyRacoon
RockyRacoon's picture

I was trying to raise the level of civility, but it didn't seem to work.  I guess ole Jimmy is a bit stressed.

Wed, 10/31/2012 - 23:26 | 2936616 PLove
PLove's picture

All who believe Sandy was the work of Mother Nature are brain dead and fully deserve the Sheenie Shit Storm coming.


Wed, 10/31/2012 - 23:28 | 2936623 markmotive
markmotive's picture

Elaborate please.

Wed, 10/31/2012 - 23:29 | 2936627 willwork4food
willwork4food's picture

I second

Wed, 10/31/2012 - 23:34 | 2936637 lasvegaspersona
lasvegaspersona's picture

only the initiated may know!...

Thu, 11/01/2012 - 00:04 | 2936687 willwork4food
willwork4food's picture

I have Heineken. I am indeed eneciatted..ah.. mean ineciated. what ever.

Thu, 11/01/2012 - 00:12 | 2936699 RockyRacoon
RockyRacoon's picture

I think the word you're looking for is "inebriated".

Thu, 11/01/2012 - 16:55 | 2938863 willwork4food
willwork4food's picture

No shit sherlock. It was meant as a joke!

Sun, 11/04/2012 - 17:43 | 2946798 RockyRacoon
RockyRacoon's picture

Yeah... chill out.

Thu, 11/01/2012 - 00:12 | 2936698 knukles
knukles's picture

The information is plentiful and readily available in the public domain for those who search.

Once awakened, one may never again sleep.

Thu, 11/01/2012 - 00:24 | 2936714 Ineverslice
Ineverslice's picture


Indeed...a very large onion awaits to peeled.

Then again, good ol' Bldg. 7 is always a nice starting point for the few who want to listen.

Thu, 11/01/2012 - 00:52 | 2936762 DavidPierre
DavidPierre's picture

SmokeyQuinn is not one who will listen to the truth about WTC #7.

Quinn and Krugman ... two peas out of the same brain pod.

The Cobert Report did a special on people like Quinn.

9/11: A Conspiracy Theory
Thu, 11/01/2012 - 01:02 | 2936776 Ineverslice
Ineverslice's picture


Aah yess, the 911 101 vid! lol 8000 foot descending 270 degree corkscrew turn into the Pentagon DOD accounting office...

Thu, 11/01/2012 - 01:10 | 2936782 DavidPierre
DavidPierre's picture
9/11 Is the LitmusTest

SmokeyQuinn is a Liar, a Hypocrite and a Tool.

Thu, 11/01/2012 - 05:25 | 2936884 Poor Grogman
Poor Grogman's picture

So he used to pick on you at school eh?

It's ok, let the anger come out...

Wed, 10/31/2012 - 23:39 | 2936646 Ineverslice
Ineverslice's picture

This doc has been referenced here on ZH a couple of times.

Not concluding anything, but much of it makes scientific sense and the motives can easily be understood.  Everyone should watch this.

we're breathing in a mountain of metal.

Thu, 11/01/2012 - 01:21 | 2936798 Cathartes Aura
Cathartes Aura's picture

ZH threads abound with links, discussion, information, and yes, denial.

I believe people have to be ready to take in the information before they do, as the mind defends its reality, strongly in some.

but here, see if your interest is piqued with this one. . .

linked here recently by some trusted long time "Hedgers, I'll let them decide if they want to be mentioned. . .

thanks again.

Wed, 10/31/2012 - 23:26 | 2936617 John Law Lives
John Law Lives's picture

For every prominent Keynesian economist who preaches the net benefit of broken windows, how about letting the masses break all your windows (and burn your mansions down) and see how much good comes from it.

Thu, 11/01/2012 - 07:28 | 2936961 Drunken Monkey
Drunken Monkey's picture

Oh they will, just give it another year or 2

Wed, 10/31/2012 - 23:27 | 2936621 lasvegaspersona
lasvegaspersona's picture

Those who do not wish to understand Bastiat and Hazlett will remain unable to understand them.

Blessed be the morons Lord...why I am not certain...

Wed, 10/31/2012 - 23:33 | 2936636 NidStyles
NidStyles's picture

You know Hazlett was just rehashing Mises for dummies.

Wed, 10/31/2012 - 23:37 | 2936648 lasvegaspersona
lasvegaspersona's picture

Hazlett was an editor for a major paper (or magazine...sorry, I had that somewhere...) his best known work is of course Economics in o

One Lesson. A great piece...sorry I cannot find an easy free public link...

Thu, 11/01/2012 - 01:05 | 2936779 NidStyles
NidStyles's picture

Yes, I know who he was. That book was based almost exclusively on "Human Action", by Ludwig von Mises. It was Hazlitt going through and re-writing it so that the layperson could understand it.


Hazlitt was amazing for being a non-educated person that understood what Mises was actually saying, but the true genius there came from Mises.

Thu, 11/01/2012 - 08:17 | 2937069 writingsonthewall
writingsonthewall's picture

'True genius' - all Mises did with his "Human action" is regurgitate the biblical idea that we're all born sinners.


I guess that gives some off you an excuse for being so backward - it's not your fault - "God made you that way"


it's no coincidence that Austrian school economics and god bothering often go together.

it's the ultimate excuse for having no morals!

Thu, 11/01/2012 - 18:35 | 2939164 NidStyles
NidStyles's picture

That just show's that you have never read Human Action, and obviously know nothing about Austrian Economics.

Wed, 10/31/2012 - 23:28 | 2936625 Calidreaming
Calidreaming's picture

Now I know this is definitely bullish?   Right?


Wed, 10/31/2012 - 23:31 | 2936630 NidStyles
NidStyles's picture

To the Keynesian, spending, no matter the reason, is economic growth. Only the expansion and extension of the money supply and debt mean anything to them. Wealth to them is spending money, not building savings.

Thu, 11/01/2012 - 08:15 | 2937063 writingsonthewall
writingsonthewall's picture

^^^^ Another misinterpretation of Keynes - jesus you Americans are so fucking dumb.

Did you break the windows in you street - or was i thte hurricane you cannot stop?

Thu, 11/01/2012 - 10:11 | 2937349 TWSceptic
TWSceptic's picture

No it's more or less what Keynesianism means. "Americans" are not all the same, that sounds like something a collectivist would say. If you believe that everyone in Europe (or the rest of the world) is a keynesian you are delusional. Keynesianism is how the economy works according to children, retards and (some) academics. Mind you the latter two are not mutually exclusive.

Thu, 11/01/2012 - 18:39 | 2939174 NidStyles
NidStyles's picture

Uhh, Keynes backed up the economic growth through the broken window. It's only the Austrians that still point out that Bastiat destroyed the broken wondow fallacy over a century ago.


Not an American though. I can see that you've never actually read Keynes, just as you never read Mises in that post you made above.

Wed, 10/31/2012 - 23:32 | 2936633 willwork4food
willwork4food's picture

Yes, but what if we broke ALL the banker's windows and filled their BMW's gas tank with a nice 16 oz coca-cola drink?


Wed, 10/31/2012 - 23:33 | 2936635 Fantasy Planet
Fantasy Planet's picture

So, why not just break and destory everything and then re-build it?  Exponential GDP!   

Wed, 10/31/2012 - 23:34 | 2936639 thomasincincy
thomasincincy's picture

you mean like war

Wed, 10/31/2012 - 23:43 | 2936657 Fantasy Planet
Fantasy Planet's picture

Sure, if you want to add a twist to it.  But it would have to be a Civil one.   

Wed, 10/31/2012 - 23:50 | 2936669 thomasincincy
thomasincincy's picture

or how about...majority of americans can't even begin to have the thought of a foreign invasion in their own back yard

Thu, 11/01/2012 - 03:28 | 2936842 Manic by Proxy
Manic by Proxy's picture

I agree. I mean, people are becoming so rude! It's time to bring civility to the realm of armed conflict.

Fri, 11/02/2012 - 02:00 | 2940175 JKearney3153
JKearney3153's picture

Genius, I've never been a fan of exporting jobs overseas. 

Thu, 11/01/2012 - 00:28 | 2936722 zerozulu
zerozulu's picture

You mean we still benefiting from 9/11

Someone is for sure.

Thu, 11/01/2012 - 00:13 | 2936642 willwork4food
willwork4food's picture

It would depend on WHOm you are trying to destroy.

Wed, 10/31/2012 - 23:35 | 2936641 yogibear
yogibear's picture

LOL, Insanity! How about blowing up some cities  and rebuilding them based on that theory?  The mind of a communist.

China is calling, their thinking about building more ghost cities Their looking for economist that agree with them.


Wed, 10/31/2012 - 23:37 | 2936647 willwork4food
willwork4food's picture

Yogi, China is massively different than the US. They have 10x our population and many have graded better in math/science than the world.

Those cities will be filled. Know Manderin?

Thu, 11/01/2012 - 00:34 | 2936736 akak
akak's picture


They have 10X our population

China has a population of 3.1 billion?  Really?

Know manderin?

No, but I have a passing familiarity with Kumquat, and am conversant in Pomelo.


Wed, 10/31/2012 - 23:35 | 2936643 otto skorzeny
otto skorzeny's picture

my fave is CNBC trotting out all of the c*cksuckers on how to make $ off of destruction and tragedy. as an aside- if you are going to build within 20 miles of any oceanfront you should expect this kind of thing once in awhile-also-if you build over a huge fault line one should prepare to be sucked into the earth. paving over a floodplain and then expecting not to get flooded is probably not a good idea. but-hey-Uncle Sam is there to reinforce all stupid behavior with my tax dollars so who gives a flying fuck

Wed, 10/31/2012 - 23:43 | 2936658 HD
HD's picture

We should encourage reckless behavior. If people only smoked three packs a day imagine how many jobs would be created in health care.

If more people drove drunk - just think how many more new cars would be sold when they slam into a tree or a bus full of school kids.

Think of all jobs we could create if we only started wars for no reason - oh wait....

Thu, 11/01/2012 - 00:16 | 2936705 Bay of Pigs
Bay of Pigs's picture

Why service commercial airplanes? Just think of all the buildings and fires crashing planes could destroy and burn down?

MOAR Green Shoots! 

Thu, 11/01/2012 - 00:18 | 2936708 HD
HD's picture

FINALLY someone gets it!

- P. Krugman

Thu, 11/01/2012 - 07:16 | 2936940 GetZeeGold
GetZeeGold's picture



Only after we nuke ourselves can the real prosperity begin.

Thu, 11/01/2012 - 00:47 | 2936751 TN Jed
TN Jed's picture

speaking of which, Bob Pisani popped out from behind his gloryhole earlier today to report homebuilders are expecting a pop. 

Thu, 11/01/2012 - 01:01 | 2936772 Bay of Pigs
Bay of Pigs's picture

The BlowHorn was also pumping Home Depot on the day of the storm.

Thu, 11/01/2012 - 07:17 | 2936943 GetZeeGold
GetZeeGold's picture



Not much gets by Bob.

Wed, 10/31/2012 - 23:35 | 2936644 Misean
Misean's picture

However, allowing a financial storm caused by gov't and the skanking cartel wipe a few skanks off the map would be TEOTWAWKI and would NOT be stimulative........


Yeah, Keysian's make whores blush...

Wed, 10/31/2012 - 23:43 | 2936656 Bear
Bear's picture

Easy to understand ... most claims will be declined because the disastrous damage was water damage and most do not have flood insurance ... the wind damage is also limited because most policies have a pretty good deductible. Of course, if Obama is elected, then maybe the Federal Government will pay all insurance shortfalls. 


Wed, 10/31/2012 - 23:46 | 2936663 bankonzhongguo
bankonzhongguo's picture

The only green shoots will be Krugman and his unholy band of laughing money worshiping buddies limply swinging from lamp posts.

The country is turning into The Road Warrior; meanwhile who is MAKING money on the INTENTIONAL destruction of the economy and the political system?

And to the badge wearing toadies logging IP addresses and building files on the poor and under-employed - you're one paycheck away from the rest of the herd.

Wise up.

Wed, 10/31/2012 - 23:48 | 2936667 kedi
kedi's picture

How many people that were already in an economic squeeze skimped on their insurance and didn't take flood coverage, or inadequate overall insurance? All the deductible amounts? All those folks who will not be able to replace their stuff and sink further into misery living in the tattered remains of what little they still had as their wages lagged inflation or had no job at all? And where does the insurance payouts ultimately come from? Not thin air. Eventually it comes back out of consumers pockets somewhere down the road. So they will have to scrimp on something to make up replacing the stuff they could not afford to now.

Yes a certain portion of the economy will benefit. At the cost of kicking those who are already down. And after that there will be an even greater downturn in consumer spending.

Wed, 10/31/2012 - 23:48 | 2936668 Ness.
Ness.'s picture

There are plenty of broken windows in Detroit.  What am I missing?


Wed, 10/31/2012 - 23:57 | 2936679 willwork4food
willwork4food's picture

That is a very valid point.

Fri, 11/02/2012 - 02:04 | 2940181 JKearney3153
JKearney3153's picture

...white banksters

Wed, 10/31/2012 - 23:51 | 2936672 markettime
markettime's picture

Krugman= 1 word joke.

Wed, 10/31/2012 - 23:56 | 2936677 akak
akak's picture

"Knock knock"

"Who's there?"


"Krugman who?"

(*SMASH!*) --- "You can thank me later!"

Thu, 11/01/2012 - 01:56 | 2936818 eXMachina
eXMachina's picture

But... but PK won the Nobel prize for economics so he must be right. Likewise Obama won the Nobel peace prize so he can't possibly be a warmonger!? Right?.....guys? echo..... echo....

Wed, 10/31/2012 - 23:53 | 2936673 GeorgeHayduke
GeorgeHayduke's picture

What a commentary on the vampiric, zombie-like system our economy has become when it relies on natural disaster and destruction for "stimulus." But then, what do we expect from an economy that has relied on constant war for decades?

The only "growth" industry right now seems to involve modern day carpetbaggers, known as our financial system, sniffing out death, destruction and slavery around the world in order to extract profit. And that's the part of their business we know about.

Here's a question along similar lines: What if the TBTF financial giants were found to be laundering money from the drug and sex slave trade? (Surely these beacons of business and financial morality and integrity would never be involved in such things, would they?) However, IF such activity WERE hypothetically found one day, would it be considered "stimulus" too? Or a new growth sector? Just wondering.

Thu, 11/01/2012 - 00:00 | 2936683 willwork4food
willwork4food's picture

I don't know, but I might be inclined to pay a nice looking girl to escort me to an important financial function.

Thu, 11/01/2012 - 01:37 | 2936807 Cathartes Aura
Cathartes Aura's picture


Bagley was among at least six HSBC executives who testified before the Senate’s Permanent Subcommittee on Investigations today after the panel released a 335-page report describing a decade of compliance failures by Europe’s biggest bank. London- based HSBC enabled drug lords to launder money in Mexico, did business with firms linked to terrorism and concealed transactions that bypassed U.S. sanctions against Iran, Senate investigators said in the report.

of course, the sex slave trade is harder to pinpoint, as it's so ubiquitous, profitable, and popular. . .

Wed, 10/31/2012 - 23:57 | 2936674 newengland
newengland's picture

If Krugman Crookman Keynsians believe in their words, then they won't mind killing themselves in order to provide more work for undertakers, and boost gdp in a peaceful way rather than send better men to fight war abroad for their Socialist Internationale, Trilateral Commission bullshit.


The problem with Keynsians is that they are bare faced liars - the 'educated fool' or 'useful idiot' as Lenin said.

Stimulating the money warlords by burning down the economy only profits sick psychopaths and sociopaths.



Wed, 10/31/2012 - 23:56 | 2936676 Ms. Erable
Ms. Erable's picture

"Broken bullshit brings beaucoup Benny Bux, bitchez."

-Krugman's last 'economics' lecture at some school for inbred metrosexuals.

Wed, 10/31/2012 - 23:57 | 2936678 Bastiat
Bastiat's picture

I approve this message.

Thu, 11/01/2012 - 00:04 | 2936686 devo
devo's picture

Or he'd hold the 6 francs and Bernanke would inflate them away.


Thu, 11/01/2012 - 00:09 | 2936691 theoakman
theoakman's picture

My favorite blog during disasters is Krugman’s blog. I live right down the road from the rich putz. Last giant snow storm, he hired a plow to clear his driveway and then he snaps a photo of him holding a shovel for his blog as if he did it all himself.

This time around, he claims the power lines were down in his driveway. No Paul, that would be down the street. I guess he just bends the truth on every event, not just economics and politics.  Shows you how much of a pathological liar he is. 

Thu, 11/01/2012 - 00:17 | 2936707 Bastiat
Bastiat's picture

Anecdotes like this are priceless.  Thanks.

Thu, 11/01/2012 - 03:56 | 2936851 Hobbleknee
Hobbleknee's picture

I would pay money* to see your pics exposing his BS.


* Silver, gold

Thu, 11/01/2012 - 00:20 | 2936710 sytallix
sytallix's picture

Saw this report from Thomm Hartmann and asuming it is all true I was hoping if a freemarket enthusiast could explain if supposed deregulation was truly the cause of this. Having just finished Peter Schiffs latest book my views on regulation have changed a fair amount.

"You need to know this. Across 18 states, 25 Americans are dead and another 344 sickened by a growing meningitis outbreak. And Mitt Romney might be responsible. As Craig Unger at Salon reports this week, the pharmaceutical company that's responsible for the outbreak, Massachusetts-based New England Compounding Company, was cited for numerous violations in 2004 while Mitt Romney was Governor. However, his administration did nothing to punish the company or place more regulations on it. Records show that that between 2003 and 2006 – there were six complaints against the New England Compounding Company, yet the Romney administration did not crack down on the company, and instead signed an agreement allowing the company to regulate itself in the future. It should be noted that New England Compounding Company is a big political donor to both Mitt Romney and Republican Senator Scott Brown in Massachusetts. But as a result of their "self-regulation" order by Romney – 25 Americans are now dead. As an attorney representing the victims argues, "It goes all the way up to Mitt Romney...When the person who is supposed to be in charge of oversight does not believe oversight is necessary, this is what happens." This is why a Romney presidency is so dangerous to America. The safety of our air, water, food, medicine is in jeopardy thanks to government regulation that Mitt Romney wants to get rid of. We know what happens when we try to let capitalism regulate itself: economics crash and lives are ruined." - From

Thu, 11/01/2012 - 01:14 | 2936792 Clowns on Acid
Clowns on Acid's picture

syllitax - Are you playing 7 degress of separation now..?

Thu, 11/01/2012 - 01:59 | 2936820 Cathartes Aura
Cathartes Aura's picture

wasn't it six degrees?  ah well, that's inflation for you.

Romney's dealings with Monsanto during his Bain years are all I need to know about his "ethics" - others mileage may vary. . . I have no doubts that there are plans for "outbreaks" ongoing, globally.    amrka has plenty of history with biowarfare, including here in the homeland.

Thu, 11/01/2012 - 07:32 | 2936970 RSBriggs
RSBriggs's picture

I lived in Connecticut once and knew a guy from Massachusetts who had a friend whose sister talked to someone that said they found a penny in front of a CVS pharmacy once after buyrig tampons for his wife - and donated said penny to the Republicans.   The guy got killed by a drunk driver while crossing the street at an intersection a few miles from there six years later. 

It's obvious that Mitt Romney arranged to have the guy murdered to cover up the fact that he took a campaign contribution from someone that was complicit in allowing CVS to sell tampons that caused toxic shock syndrome...  </sarc>

So, Mitt Romney is supposed to be responsible for what the FDA didn't do while he was a governor (and incidently, not head of the fucking FDA)?  Medical manufacturers - including compounding pharmacies - are regulated at the Federal level by the FDA, not state governors.   



Thu, 11/01/2012 - 00:27 | 2936719 Milton Waddams
Milton Waddams's picture

Considering the country has been in recession since June, this disaster will be the final straw that breaks the camel’s back. The powers that be will try to keep the broken economy fallacy going as long as they can, but anyone capable of thinking realizes the country is in the shitter. The mood continues to darken. The storm clouds continue to swirl and a bad moon is rising. But don’t worry, unnamed economists say everything is just fine. Fix that window and boost the economy.

Author has likely never traded a financial product in his life and / or has no position on at this time.

Thu, 11/01/2012 - 00:31 | 2936728 tbd108
tbd108's picture

15 years or so ago, a "businessman" from the New York City area, who was in the business of repairing car windows, was caught, after several months, shooting out the windows of cars all over his part of the city (I think it was Queens but it might have been Brooklyn). I now realize now that drumming up business such as he was doing, weren't criminal acts, he was trying a regenerate the city! Maybe we can find this guy (anyone else remember more about him?) and put him in Bloomberg's office and I am sure New York City would quickly become 'a shining city upon a hill' (but without the hill).

Thu, 11/01/2012 - 00:47 | 2936750 Yen Cross
Yen Cross's picture

Is that an old pic. of Krugtard?   He looks like a " Jelly Donut", in all of the recent "circle jerk" talks I have seen him in.

Thu, 11/01/2012 - 01:07 | 2936781 akak
akak's picture

That's just waistline inflation, but it isn't nearly as bad as your eyes would lead you to believe, and can be almost completely denied by the appropriate hedonic adjustments.


Thu, 11/01/2012 - 00:48 | 2936755 Joebloinvestor
Joebloinvestor's picture

Obama should have concentrated on flood insurance.

Thu, 11/01/2012 - 00:49 | 2936758 Rathmullan
Rathmullan's picture

And let's start with a few million less iphone5s sold than otherwise would have been the case.

Thu, 11/01/2012 - 01:02 | 2936775 clagr
clagr's picture

What a F*#^ing Tool!!!!!

Lets just blow up a few more of our cities--think of the great GDP we could post with all the rebuilding required.

Thu, 11/01/2012 - 01:12 | 2936787 Clashfan
Clashfan's picture




Thu, 11/01/2012 - 01:13 | 2936790 Weyland_Yutani
Weyland_Yutani's picture

Read the other day that the US spends around 800 billion dollars on their military - every fucking year. Wouldn't it have been better if that money stayed in the country and maybe a small fraction of the money spent on backup systems for hospitals?


Thu, 11/01/2012 - 07:35 | 2936978 RSBriggs
RSBriggs's picture

Hospitals aren't owned by the government, they're private corporations...

Thu, 11/01/2012 - 01:18 | 2936795 Azwethinkweiz
Azwethinkweiz's picture

Support your local economy! I couldn't afford candy so I handed out rocks to the little trick or treaters with instructions to smash all the windows in my neighborhood.

Thu, 11/01/2012 - 01:38 | 2936809 akak
akak's picture

"Boosting GDP --- for the children!"

Thu, 11/01/2012 - 01:23 | 2936799 q99x2
q99x2's picture

Krugman. If he is not retarded then he is a traitor.

Thu, 11/01/2012 - 01:41 | 2936810 akak
akak's picture

You're ignoring the very real possibility that he may be both.

Thu, 11/01/2012 - 05:43 | 2936894 Peterus
Peterus's picture

He's a magician. He can take any fallacy no matter how insane and put a spell on it with respectable sounding econ talk that creates almost perfect illusion.

He could also be evil, evil kind of troll. Intelligent man that decided to screw with USA by defending it's course toward the cliff edge.

Thu, 11/01/2012 - 05:46 | 2936895 falak pema
falak pema's picture

you remind me of that iconic film : Dr Strangelove.

Thu, 11/01/2012 - 02:03 | 2936821 besnook
besnook's picture

the problem with the bastiat parable is the miracle of modern economics. an unlimited source of fiat keeps filling the cup faster than liquid can be drank down. occassionally, the glazier gets a bigger gulp than the plumber but they all get their gulp until the punchbowl stops filling, then the animal spirits, like any self respecting animal threatened with starvation, turns on his fellow man for material salvation. food, clothing, shelter, before god!


krugman is right in the fiat world. any reason for infrastructure renovation is a good reason to slosh the bowl around to the construction sector compliments of the insurance industry and the .gov disaster funds poured in the area. like paul said, war is the best way out of this mess, but a natural disaster is a big help. print, baby, print! these are times like every other time but without anywhere to run and hide.

Thu, 11/01/2012 - 02:41 | 2936833 Dre4dwolf
Dre4dwolf's picture

The day after sandy, I got like 20 emails from creditors assuring me how eager they were to loan me money to "get things going again".

Seriously, whats worst? the storm ? or the banker vultures it brought? Seriously the banks circle corpses like.... like if they loaned you money in this economy you might as well burn it on sex and drugs cause chances are they will reposses anything you fix anyway!

Thu, 11/01/2012 - 03:30 | 2936844 Peter Pan
Peter Pan's picture

That broken window policy seems to have worked wonders for Iraq, Afghanistan, why not for America.

Thu, 11/01/2012 - 04:43 | 2936860 falak pema
falak pema's picture

the difference is Iraq et al window shopping was for oil; here its for hot air blown in from the sea. 

What's the price of hot air per cu metre these days, 'cos the collateral damage is in billions! 

Not to worry the US can print 'hot money' by the cart loads to counter balance in its books all that hot air. 

There fixed it! Atlantic air is now at par with ME oil !

Something tells me it'll be more plentiful in the coming years than ME oil! 

Thu, 11/01/2012 - 05:13 | 2936875 Peterus
Peterus's picture

Your reasoning is beyond any attack!

However I would say that in current serious conditions normal measures will not be enough. Great leaders will need to think and act bold! Boldest measures are the safest. Don't just print a trillion here and there keep these printing presses runnin' Mugabe style.

Thu, 11/01/2012 - 03:35 | 2936845 Joe A
Joe A's picture

Of course! It will add to the country's GDP when the government has to fix all the damages. The Fed after all has the ability to create money out of thin air. The world does not need less disasters, it needs more!

Thu, 11/01/2012 - 03:44 | 2936848 CEOoftheSOFA
CEOoftheSOFA's picture

I have about $1500 damage to my house and car, and $1500 deductable on my insurance.  I'm not feeling very stimulated.  Lucky, but not stimulated.

Thu, 11/01/2012 - 06:54 | 2936925 writingsonthewall
writingsonthewall's picture

...but the car body shop and the tradesman you get to do the work will be 'stimulated'.

The fact that you are getting it done - indicates you can afford it.

So you give up something you afford to stimulate someone else - winners all round.

Thu, 11/01/2012 - 04:08 | 2936855 Moon Pie
Moon Pie's picture

I am, sad to say, a transmogrified transplant from New somehow in Orange County, CA.  I can truly say that the six francs allegory is completely adept.  I know my relatives, a few that had summer homes along the shore, will not see the benefit or attraction of overpaying some opportunistic and underskilled carpenter from Delaware or Central PA to do whatever it is that is needed to be done.

Generally, people whose primary or summer homes along the coast are people who have had to work hard, use their wiles, talents and whatever to attain a living or a summer retreat for themselves and their families.  They are not the ultra rich (in most cases) and are those that patronized the boardwalk...which is...gone.  So sad.  I spent my summers there since I could walk...

But I digress.  Point is, there will be real pain in the local economy and for those that have fuelled it for decades.  They will rebuild, yes.  But just as the author of this piece states, it will come at a significant cost.  Many of these people work in NY, for financial firms, advertising firms and all sorts of others.  They strain to keep their summer bungalows and the joy and hope of lasting good things and times that they have known.  The long lasting effects of Sandy will linger for time longer than the spot-weld marketing world of things as they are today...and could shape or at least foster a new can only hope.

As for PK and his ilk...they've never had a slice of pizza (or two) at the Saw Mill...never put down a quarter on a spinning wheel...never will either....they haven't a clue what has happened here and what will ensue.  Do you, Mr. Jones?

End the Fed.  Decentralize Government.  Live Free or Die.

Hang in there, Jersey!



Thu, 11/01/2012 - 05:21 | 2936880 Seasmoke
Seasmoke's picture

Even the sawmill pizza is not the same as the 80s. Nothing lasts forever

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