Economics of Volcanoes

Like quite a few teachers I am currently stuck on the wrong side of the Atlantic – waiting for a chance to fly back to Britain. I’m not sure when I will return to England, but, after an Easter break the blog will resume from today.

Apparantely, there is one volcano, the memorably named, Eyjafjallajoekull    in Iceland which erupted for two years the last time it went off in the nineteenth century. If that is the case, I would recommend buying shares in Shipping Companies. BTW: The QE2 sails at the end of the month for only $900.

With airlines losing an estimated £130 million a day (£1billion in total) it is a disaster for an industry already suffering from effects of the recession. If it continues any longer, the airline industry is going to require a bailout from Governments.

The wider impact on the economy is unlikely to be too serious unless it continues for a longer time.  But, the impact on individual businesses left without workers could be very damaging. Insurance companies could face huge payouts.

O well, back to spending seven hours trying to get through to Virgin Atlantic on telephone…

By on April 19th, 2010

One thought on “Economics of Volcanoes

  1. The economy, as all matters in the universe are of a cyclical nature. The only thing that is constant is continuous movement. The ups and downs in the economic cycle provide the needed energy for the economy to move forward. Like a car must stop for refueling tonce in a while the same way the economy has to slow down for recharging the batteries that make it run. Over the years , we have gotten very good in recharging the econolic batteries very fast and efficently. Refueling stops i.e. recessions have become shorter and shorter while periods of growth have become longer.

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