Climate Risk in the Housing Market Has Echoes of Subprime Crisis

nytimes.com

10 pointsgdubs2 comments

This article doesn't contain the word "insurance" once. As mortgages require home insurance, why do the banks suddenly feel uncomfortable lending to coastal areas? The article does not address this.

If the risk goes up as the science says it will, insurance rates will either have to rise substantially, or the insurer will lose lots of money to claims and potentially fail.

Insurance will also not protect banks from stranded assets if the perceived value of coastal real estate plummets and people abandon them as we saw in the housing crisis.

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