No economic genius here. Just a realist. Millions of people out of work; homes foreclosing; empty stores. My husband is in the construction biz. I'm sure there are some industries that fare well during a recession, but none around here. Even the bars. I won't consider the recession over until people are back to work despite what the Ivy Leaguers want us to think.
Isn't it amazing, in less than four years Nancy Pelosi created a huge recession, costing Americans jobs, deflating their pensions and the value of their homes and investments. ******* Democrats, let Wall Street Free!!
Now that Boehner will be Speaker, shit will happen. American business will expand, the trades will flourish as new buildings are built without the burden of regulations or even such outrageous laws as minimum wage.
Hell, the barons of industry will be able to play one carpenter against another, one plumber against another and even hire unskilled labor - maybe even from other countries - in the rush for profit.
Imagine, 16, 17, and 18 year olds comng to our shores taking the jobs of the greedy tradesmen who demand Union Wages and Union benefits. Hell, anyone can drive a nail, install pipes and wire. **** the greedy men and women who hold us ransom with their unreasonable demands.
Thinking of the building industry.
How did that cheap Chinese dry wall work out?
Economic Losses From Chinese Drywall
Could Reach $25 Billion, Insurers Warned
Insured portion unclear, as policy exclusions might lower p&c industryÂ’s price tag
Published 7/27/2009
The recent problems surrounding Chinese drywall have been compared to everything
from a silent hurricane to the next asbestos. But how do the costs really compare to a
hurricane?
Are we more likely to see the quick
settlement of claims typical of property
damage from hurricanes, or the long
reporting lags and hard-fought legal
battles typical of asbestos claims?
Based on publicly available information
and experience in estimating past
construction-related torts, we estimate
total economic losses could fall in the
$15 billion to $25 billion range—numbers
that rival some hurricanes but fall far
short of the price tag for asbestos.
Who will ultimately pay for the claims?
The share of the total that will fall to
property and casualty insurers remains
unclear. Early analysis suggests that
potential defendants will face a host of
coverage issues, and some have large
self-insured retentions which will limit
recovery from commercial insurers.
But asbestos, construction defect and
even hurricane scenarios have already
taught private insurers how wrong initial thinking on insured damages can be,
underscoring the need for careful monitoring of claims experience as the drywall
cases unfold.
INITIAL COST ESTIMATES
It has been widely reported that more than 500 million pounds of Chinese drywall was
imported from China between the years 2004 and 2007 and installed in approximately
100,000 homes nationwide. The Consumer Product Safety Commission (CPSC) has
now recorded 608 reports of defective Chinese drywall in 21 states.
The most frequently cited issue is the smell of rotten eggs emanating from the drywall.
Property damage claims include the failure of air conditioning units and corrosion of
copper piping/coils, electrical wires and personal property such as furniture, fixtures
and jewelry.
Bodily injury claims allege respiratory problems, persistent cough, bloody noses,
recurrent headaches, sinus infections, asthma attacks and fatigue.
The costs of the defective Chinese drywall can be separated into five categories:
indemnity related to repairing the house, bodily injury from any health effects of the
gases being emitted, plaintiffsÂ’ lawyers fees, defense lawyers fees and indirect costs.
Of these, the costs of home repair are the most straightforward.
Randy Noel, representing the National Association of Home Builders, recently testified
before Congress that the cost of remediation may range from one-third of the homeÂ’s
value to $100,000. While fewer than 100,000 houses may need remediation in their
entirety, the full number of homes containing Chinese drywall can be used to estimate
an upper boundary of the potential cost.
According to the NAHB, the countrywide median value of new homes sold between
2004 and 2007 was approximately $240,000. At one-third of the home value, the
100,000 homes with Chinese drywall would cost approximately $8 billion to repair.
The cost estimate of $100,000 per home yields an even higher gross estimate of $10
billion.
Bodily injury costs are more elusive at the moment. Chinese drywall claims may have
a similar fate as mold claims a decade ago—the causal link between defective drywall
and adverse health effects may be difficult to establish. A lot will depend on the
outcome of the testing by the CPSC.
As weÂ’ve seen with asbestos, any health findings established by a professional or
government organization can have a dramatic effect on the outcome of bodily injury
lawsuits. If the CPSC concludes that defective Chinese drywall poses a health
problem, a significant number of bodily injury claims may follow.
Even without official health findings, a homeowner with the right lawyer in the right
venue could get a big settlement. Louisiana, where much of the defect drywall was
installed and where several cases have been transferred, is known as a plaintifffriendly
venue. Judges and juries might be even more sympathetic to plaintiffs hit by
this.
http://blog.njeifs.com/Chinese%20Drywall%20-%209.15.09.pdf
Yep we can trust industry to police itself and we need no lawyers to protect us from industry.
