This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Hurricane Sandy Will Make the Fiscal Cliff Deeper: Street Whispers

NEW YORK ( TheStreet) -- As New York and New Jersey officials outline the financial costs of Hurricane Sandy, which may run in excess of $70 billion, the size of the storm's bill indicates taxpayer funds may be needed to fill a gap between what states, insurers, and the Federal Emergency Management Agency can pay out, and what's actually needed.

Top lawmakers and officials indicated on Monday that the federal government, not just storm battered states, may be asked to foot the bill between Sandy's economic blow and the FEMA funds and insurance-related claims available to handle the storm's aftermath.

Amid uncertainty over the threat of increasing storm damage to the northeast and whether federal lawmakers can even agree on a budget deal to avert a so-called ' fiscal cliff,' the question is whether Washington will be willing to foot a recovery bill that could run in the tens of billions.

On Monday, New York State Governor Andrew Cuomo and New York City Mayor Michael Bloomberg unveiled calculations on the Sandy's damages, which showed New York may face a $42 billion hit, highlighted by $19 in damages to New York City's infrastructure, housing and local economy. In New Jersey, Gov. Chris Christie said Sandy's storm toll could reach nearly $30 billion. In Connecticut, damages may reach $360 million.

While calculations of the storms costs are on the rise, states are preparing for payments from FEMA and insurers to remain fixed. For instance, in New York City, Mayor Bloomberg said insurers will likely cover $3.8 billion, while FEMA will contribute at least $5.4 billion. That still leaves New York City in the hole by about $10 billion, which Bloomberg said he would ask for in federal funding from Congress.

"New York has suffered unprecedented damage from Hurricane Sandy, both wide and deep, and it demands a strong and equally serious response from the Federal Government," said New York Senator Charles Schumer, of the state's needed funding in a statement.

In New Jersey, the story is similar. Already, Gov. Chris Christie - a staunch fiscal conservative - has said he will work to get federal funding to pay the state's storm costs in full. On Monday, Christie stuck to that stance. "I stand ready to work with our congressional delegation and the Obama administration to get the funding support New Jersey expects and deserves," Christie said in the statement.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,129.98 -1.99 -0.01%
S&P 500 1,998.01 -0.97 -0.05%
NASDAQ 4,552.9680 +0.2090 0.00%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs