Houston suffering from non-stop rain
Catastrophic flooding is shutting down large parts of Texas, including Houston. Pictures from the scene are unbelievable.
This one shows water 17 feet deep on the San Houston Parkway.
What's truly terrifying is that heavy rains are expected for another 4 days as the storm sits over the region.
Rescue efforts are underway throughout the state but this is beginning to look like a Katrina-level disaster.
In terms of financial markets, the focus will be on oil initially. About 20 million barrels of oil will not be delivered to Texas this week because of port shutdowns. Meanwhile, refineries are continuing to announce closures. That supply-demand balance will be tricky to handicap with many of the trades based on different delivery times/places.
A more straight-line trade is likely to be gasoline.
Further out, expect the Fed to blame a weak Q3 and all its other forecast misses on Harvey. In the future the same forecasters will gloss over how rebuilding efforts goosed growth.
