Today I posted my three-hundred-and-second YouTube Video: The Coming End of Business as Usual
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Today’s video is The Coming End of Business as Usual. One of the most extraordinary things about the global climate catastrophe is how little effect it’s had on financial markets and their behavior and expectations. The markets still believe that The Fed and other world central banks are still in control of the global economy. Increasing that’s not so as thousands of people die from the heat, places become more and more unlivable, and entire industries face stunning systemic changes. An example of such change is the homeowners market in Louisiana, Florida and California. Louisiana, after dealing with increasingly damaging hurricanes in recent years, has had a dozen insurers go belly-up in the state. Now, about 100,000 households have been forced to move from private insurers into the insurance state fund. Just like Florida, this fiscally conservative state is moving more and more of its citizens to a state-run insurance pool. Sixteen storms and hurricanes in the past three years have resulted in $100-200 billion of property damage in Florida, causing insurance rates to go up 200% since 2019 and many insurers to cease doing business the state. Now 1.4 million people rely on Florida’s Citizens Property Plan, a state-run fund. The conservative state has to rely on–dare I say it, socialism–in order to keep its real estate market goin-it’s hard to get a mortgage to buy a house without homeowners insurance. In California, wildfires have caused homeowners insurance policies to go up 16%, with many insurers leaving the state. The state’s insurance plan called “FAIR” has seen enrollment double since 2019. These are examples of the ways in which capitalism and capital markets will change during this age of global catastrophe. I think we can expect more to come.
Here’s the link: