Saturday, September 03, 2005

Why the hurricane may hurt the economy more than 9/11.:

If New Orleans were pure Old Economy—if, for example, it simply grew wheat—its devastation would not cost that much, because other wheat and grain growers would replace it. If it were pure New Economy, like Wall Street, it could bounce back instantly, because its real assets (information and people) would not be irretrievably lost. But because it's right in the middle, the damage will be enormous.
1:56 PM