Insurance crisis

Real estate has become climate change’s biggest victim. Climate change is attacking America’s most valuable, biggest asset class. For the first time in history there are regions of the country where major property insurers have dropped coverage altogether as elsewhere rates are on the climb, pricing some buyers out of the market.

America’s politicians punted on tackling climate change decades ago, except for Senator Sheldon Whitehouse, who has masterfully delivered more than 290 “Time to Wake Up” climate speeches to the Senate, calling out deniers and demanding bold action. If Congress had been composed of “Whitehouse intellect,” the world climate system would be in much better shape today. And not threatening the American Dream of Homeownership.

At a Senate confirmation hearing for Trump appointee Michael Faulkender as Deputy Treasury Secretary, Senator Whitehouse opened up all firing cylinders, blasting away like there’s no tomorrow, which may be where we’re headed after listening to the senator’s scolding rendition of how Congress has failed climate change impacting the financial system and US economy. In short, climate change is raising hell with the financial system as US property insurance goes up in flames.

In his opening remarks, the senator referenced “very dark economic storm clouds on the horizon,” because of climate change which the administration cannot seriously address because massive political funding has made it “an article of faith to deny climate change,” in fact, claiming “it’s a hoax.” This perverse attitude is now holding America’s homeowner’s hostage.

Interestingly, over past decades, scientists have gotten it right, even the Exxon scientists got it right, meaning, fossil fuel emissions (CO2) cause climate change. Nevertheless, Congress has failed to act because of pressure by fossil fuel interests, including the “largest campaign of disinformation that America has ever seen,” as dark money spills out all over the place. As a result, all serious bipartisan efforts on The Hill on climate change have been squelched. Poof!

Disinformation, disinformation, disinformation has been the guiding light of climate denialism. It’s a hoax; it’s a hoax; it’s a hoax; it’s fake news; it’s fake news, repetition creates fact.

As the senator and the Trump appointee discussed in a meeting beforehand in the senator’s office, the consequences of climate change are severe based upon professional risk judgement where fiduciary responsibly is considered. For example, the chief economist of Freddie Mac told committee hearings we are headed for a “property insurance collapse” that will cascade into a crash in coastal property values that will be so significant that it will cascade into the entire economy, same as 2008. That’s the warning on coastal properties. Additionally, wildfires have now added new property insurance risks that are far removed from coastal property. Climate change knows no boundaries as congressional ineptness and timidity to challenge it clobbers American homeownership.

Excerpted: ‘Senator Whitehouse’s Climate Crisis/Property Insurance/RE Collapse Scenario’. Courtesy: Counterpunch.org