Amid desperate efforts to save stranded citizens - police report over 3,000 rescues alone - and the arrival of the so-called 'cajun navy' to assist, Harvey continues to pummel Texas, paralyzing Houston as the region braces for yet more rain after the Tropical Storm recharged over warm waters and heading back in-land.
There are still two to three days before the peak flooding - and damage - in Houston arrives, yet already Wall Street is trying to calculate how much the worst natural disaster in decades befalling the 4th largest American city will impact US GDP. Or rather boost it, because in two notes out late in the day Monday, one from Goldman and one from JPM, the authors come to two polar opposite conclusions: Goldman claims that the Houston natural disaster will reduce Q3 GDP by as much as 0.2%, while JPMorgan predicts that the "net impact on Q3 and Q4 GDP should be positive."
Hurricane Harvey has unleashed unparalleled devastation on southwest Texas, flooding Houston, the fourth largest city in the US, and many towns along the Gulf coast from Galveston, to Port Lavaca and beyond. But even Harvey’s 130 mph winds aren’t strong enough to threaten the ironclad balance sheets of America’s largest insurers, which have amassed a “fatter-than-ever” capital cushion capable of absorbing any payouts related to what looks to be, by several measures, one of the worst hurricane in US history, according to the Wall Street Journal.
The US Army Corps of Engineers began releasing water into the Buffalo Bayou - the main body of water running through Houston - from two flood-control dams whose water level has risen too rapidly, a move that will flood thousands of nearby homes. Emergency workers said they began to release water from the Addicks and Barker dams located 17 miles west of downtown Houston early Monday to prevent uncontrollable flooding of the Houston metropolitan area from torrential rains released by Tropical Storm Harvey, according to ABC News.
Moments ago, in response to the devastation from hurricane Harvey, Texas Governor Abbott announced he is activating the entire Texas National Guard, bringing the total number of deployed guardsman to roughly 12,000. These National Guardsman will assist in the ongoing search and rescue effort for any Texans in immediate danger, and will be heavily involved in the extensive recovery effort in the aftermath of the storm.