Economic Effects on Japan of Current Disaster - A Reading List. 16/3/2011

So - what effects will the current disaster have on Japan - and other economies and personal finances?

Here's a brief reading list:

http://www.econbrowser.com/archives/2011/03/guest_contribut_8.html

http://krugman.blogs.nytimes.com/2011/03/15/meltdown-macroeconomics/

http://moneywatch.bnet.com/economic-news/blog/daily-money/how-japans-disaster-could-impact-your-investments/2269/?tag=content;col1

http://moneywatch.bnet.com/economic-news/blog/daily-money/how-japans-disaster-could-impact-your-investments/2269/?tag=content;col1

http://www.bostonwealth.net/2011/03/15/order-from-chaos-2/

As a quick summation, firstly on the macro-economic level, here's a comment by a Societe Generale economist:

... the impact on export infrastructure and industrial production will hit Japan's gross domestic product in the second and third quarters, while a burst of reconstruction activity will generate growth by the fourth quarter.

"Natural disasters are immediately negative for growth, but tend to be positive over the medium term," said Glenn Maguire, Asia-Pacific chief economist for Société Générale.

On a personal investment strategy, here's Barry Ritholtz's own strategy (15 March, 1.00 pm):

Today, we covered all of the short exposure

Our current posture is: 25% long, and 75% cash.

Before we make any large asset allocation moves, we will wait for the dust to settle and the picture to clarify.

The last item on the reading list has specific mention of the impact on Australia. Given that it is written from America, there may be some objectivity in the assessment.

Good luck

Red