Growth at 3.5%

[Yossarian]

http://news.bbc.co.uk/1/hi/business/4716780.stm

Ben Bernanke has said that US growth is at 3.5% for the year. Well done US and all that..

I'm surprised though. I would have expected the catastrophy in New Orleans to decimate growth for the year due to the money that has been lost through insurance / rebuilding efforts.

Is it just that the main loss due to the hurricaine has been at the Govt's expense and therefore, private business has remained healthy with the 3.5% growth?

I forget the numbers now, but I was under the impression that billions were lost / would be lost due to the floods?

[Warhammer]

Yeah, the insurance companies lost money, but the companies that are rebuilding are making money. That 3.5% does not surprise me, because I think we were on pace for 4-4.5% growth before Katrina.