Napa Quake Seen Costing Up To $4 Billion As Wineries Closed

by JASmius

Not "The Big One," but more than sufficient to economically reduce Pelosi Country to the same misery level as the rest of us:

The earthquake that struck northern California yesterday will lead to economic losses of as much as $4 billion, fueled by damaged wineries and shuttered businesses that rely on tourists.

Insurers will probably cover about $2.1 billion, according to an estimate from Kinetic Analysis Corp., which projected total losses of about twice that sum. Costs borne by the industry may be limited because many homeowners don’t have earthquake coverage, according to the Insurance Information Institute.

“The main source of claims could well be commercial claims, those coming from wineries and vineyards and other commercial interests,” Robert Hartwig, the institute’s president, said. “It will take a while for the business owners to sort this out.”

The temblor, the strongest in Northern California in 25 years, hit the Napa region north of San Francisco at about 3:20 a.m. local time Sunday, crumpling historic buildings, cracking roads and injuring more than 200 people. The quake left many in the region without power and water, and California Governor Jerry Brown declared the zone a disaster area.

In Napa, debris and broken glass littered the sidewalks in front of restaurants, wine stores, and antique shops. The city updated the number of buildings “red-tagged” as being uninhabitable to 33, including the Napa Senior Center. PG&E Corp. crews checked about 100 reports of gas leaks and odor and determined that there are no more leaks, according to an update posted to the city’s website late yesterday.

I'm not honestly certain if four billion dollars of damage is a low figure for a 6.0 quake, given the ritzy locale it hit.  The temblor was of moderate size, but it seems like it should have done more damage than that.  Which isn't to say that I wish there had been more damage; to the contrary, if that is a low figure, then Praise the LORD.

But it's not sounding that way:

“It was a significant earthquake” city manager Mike Parness said in an interview. “Given the magnitude and the reports of damage, this is going to take some time to get back from.”

It also doesn't help that Labor Day weekend is a big revenue producer for these hard-hit tourism locales such as  upscale and luxury boutique hotels, spas, inns, and of course, wineries.  What, in business terms, is known as "opportunity cost," or monies never earned, which will compound the economic impact of the quake damage.

Kind of makes you wonder if Crazy Nancy is going to show up and make a show of inspecting the damaged areas.  Okay, no, not really; she's probably freaking out about whatever has happened to her own regal estate.

The unanswerable question is, was this an isolated seismic event, or are there bigger ones yet to come?  This would be an el primo opportunity for Barack Obama to burnish his severely tarnished "messianic" credentials by coming to the Napa area, raising his arms, putter in hand, and calming the planet's crust as he once lowered its seas.



What's that?  He never actually lowered the seas?  Or cooled the planet?  Well, heck, the golf courses better still be functioning, or Pelosi's going to have another quake on her hands.