Remember the fall of the bank #LehmanBrothers, the first domino to fall in the financial crisis of 2008? Some knew what a #SubprimeMortgage is, and many others did not, but got hurt anyway
Recall those #TooBigToFail discussions? Bailing out companies with taxpayer money, because letting them take responsibility and fall was deemed worse? Even when these should have known better? Basically privatising the profits and nationalising the losses because of their #SystemicRelevance?
Hello #AI IPOs.
"Dave Burt, one of the “Big Short” investors who correctly anticipated chaos in the US #SubprimeMortgage market in the 2000s, said #InsurancPremiums for wildfire protection were just $1.5bn in 2021; damages were six times bigger. A move by insurers to close that gap could result in a drop of up to $495bn in property values, he said."
This entire article is, as it says, a "discomfort blanket", sketching out the ways various sectors can be devastated by #ClimateChange.
https://www.ft.com/content/899472a8-e5e2-4fde-bc91-7e548ba35294
"It’s only 15 years since S&P, Moody’s, and Fitch famously misjudged the #SubprimeMortgage market that triggered the 2008 financial meltdown. Now, they’re under fire for underestimating potential #climate losses in a rating system more tuned to the near term.
As for the $3.8 trillion #US #MunicipalDebt market: “no US municipal issuer’s credit rating has been changed because of #ClimateChange risk.”"
#ClimateRisk
https://www.bloomberg.com/news/articles/2023-08-01/ratings-firms-struggle-to-quantify-climate-risks-in-bond-market
Michael Hartle
Steve Dustcircle 🌹
CelloMom On Cars