FIRE: Finance Insurance Real Estate
I (Insurance) looks at longer-term risks. That’s why the industry is pulling out of Florida, etc. The know what is coming.
F(inance) and RE(real estate) look short-term and are still ignoring the climate crisis. There are short-term profits to be made.
Financial collapse happens slowly, then all at once. Another huge hurricane? A heat wave that kills thousands? Terrible flooding? SOMETHING will happen one of these days, and suddenly everyone will be worried that they shouldn’t be where they are.
Florida real estate is an example. It is already worthless because it will be underwater relatively soon. And one day SOMETHING will happen and everyone will decide it’s time to get out. Sell! But they’ll all decide to sell at once and the buyers will have seen the same thing. So all the mortgage will fail. All the lenders will fail.
And THAT will trigger a closer look at other climate-devalued real estate, like Phoenix and every other coastal area.
F and RE will catch up with I.