Thursday, March 09, 2017

Trump Presidency somewhat bad for Louisiana

Do you live in a low-lying coastal region where sometimes you worry about hurricanes, maybe?  Prepare to be made great again, buddy.
The other reason that the coastal property bubble is about to burst is that the Trump administration is taking active measures to boost U.S. emissions and gut clean energy programs. The United States may or may not stay in the Paris Agreement, but its leaders are actively working to reduce our ability to warn coastal residents of hurricanes and storm surge in a timely fashion — and they are working to gut coastal adaptation programs.

Donald Trump has appointed climate science deniers to almost every relevant position, and he has floated budgets that would gut not just climate science, but devastate our ability to monitor ice melt and to forecast extreme coastal weather such as hurricanes.

So if you own or invest in coastal property, or insure coastal property, or write 30-year mortgages for such property, it seems pretty clear that the bursting of the coastal property bubble is closer than you might have thought.

South Miami mayor Philip Stoddard has warned that “coastal mortgages are growing into as big a bubble as the housing market of 2007.” He points out that when this bubble crashes it will never recover, but prices will continue to drop as sea levels and storm surges get higher and higher.
The good news, I guess, is Mar-A-Lago is going under too. So, we'll have that.

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