L.A. Burns

[onetrack]

There's an interesting prediction about how the LA fires could contribute to a U.S. economic crisis, along the lines of the GFC in 2008, in the article linked to below. This holds true if the total size of the financial payout sends multiple insurers to the wall, and if property prices in highly-desirable areas crash back to low levels, sparking a mortgage crisis.

 

The thing is, you can get insurance cover for nearly any event - but at what cost? When the premium becomes an unpayable level, there's not a lot of options left. Many people in the LA region will probably go without insurance if they rebuild.

 

Stepdaughter lives in the Perth Hills, on a 5 acre (2Ha) bush block, where bushfire is an every-present major threat. She knows if a bushfire sweeps though her place, everything will probably go.

 

We pay $1000 for home and contents insurance here in the city, she pays $9000 annual premium for her place, with a property value that is only a little more than our house in the city.

 

https://www.cbsnews.com/news/fires-california-palisades-fire-homeowners-insurance-state-farm-fair-losses/

[onetrack]

Incidentally, the "Hollywood" lettering on fire photo, is an AI-generated fake photo.

 

 

[facthunter]

 Get used to it. This is only the beginning.  Nev