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Every time I read articles like this, I think of what Dan Pena said when asked about climate change. Now I will admit that he is a difficult guy to take seriou
by m348e912 4y ago
Every time I read articles like this, I think of what Dan Pena said when asked about climate change.
Now I will admit that he is a difficult guy to take seriously, but there is one point he makes: If the water on the planet is going to rise 10ft, the southern part of the US including Florida is gone.
He adds: If the risk were real as we think, banks wouldn't be investing in new construction or providing 30-40 year mortgages on new property in Florida close to the ocean.
But yet they are.
I realize that banks are not immune to horribly bad financial decisions, but surely they have done their own risk analysis on climate change as it relates to Florida property.
Link to video clip: https://www.youtube.com/watch?v=QHxauhxtYtk https://www.youtube.com/watch?v=QHxauhxtYtk
- Someone 4y ago> If the risk were real as we think, banks wouldn't be investing in new construction or providing 30-40 year mortgages on new property in Florida close to the ocean The problem is that it isn’t banks that provide the mortgages, but banking personnel that will be retired in 30-40 years and wants to get bonuses or promotions now. Pension funds may have a longer time horizon and might pressure CEOs into taking a longer-term view, but there, too, it’s not “pension funds”, but “pension fund personnel” and they also get judged on (relatively) short-term investment gains.
- bell-cot 4y agoObvious counter-point - are the banks actually investing, long-term, in those properties? Or are they just doing short-term financing...then selling the risky long-term mortgages, bonds, etc. on to less-risk-adverse investors and/or "government guaranteed" organizations.