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Sandy has little impact on Colo. companies

10:53 PM, Oct 30, 2012   |    comments
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In terms of impact, most of the U.S. won't feel a pinch. It's the 15 states that were in Sandy's path that'll really feel the blow, according to DU Economics Professor Mac Clouse.

"I think it's going to be pretty bad. It's going to take a long time for businesses to re-open," Clouse said.

Clouse says the storm really paralyzed transportation on the ground and air to half the states in Sandy's path. Those states, Clouse says, account for about 23 percent of national gross domestic product in our country. They pump out $13-trillion a day in economic output.

"That 23 percent is a significant number," Clouse said. "It's one quarter of our economy. It's as if you had a store and you shut down one fourth of your store."

Clouse says Colorado based companies likely won't be impacted, since most tend to do business on the west coast. When it comes to insurance, a catastrophe modeling firm estimates insured losses will run $7 to $10 billion. Clouse says insurance agencies are well prepared.

"They've got the reserves. We may see some 4th quarter earnings number that might take a hit," Clouse explained.

Since the storm didn't severely damage any refineries, gas prices won't be impacted. In fact, they're actually dropping. Clouse says there is a silver lining to this, at least, for construction employees looking for work.

"If you happen to be a heavy equipment operator, you might be pretty happy right now. They're going to need a lot of front loaders to pick up sand," Clouse said.

(KUSA-TV © 2012 Multimedia Holdings Corporation)