A ‘Big Short’ investor fears an often-overlooked climate risk could see history repeating itself in the housing market.
Dave Burt, CEO of investment research firm DeltaTerra Capital, was one of the few skeptics who recognized the real estate sector was teetering on the brink of collapse in 2007.
He helped two of the protagonists of Michael Lewis’ bestselling book “The Big Short” bet against the mortgage market in the lead-up to the 2008 economic collapse. As it turned out, they were right and made millions.
Now, Burt believes the mortgage market is underestimating another systemic issue: flood risk. If realized, he warns the fallout could resemble the massive correction seen during the global financial crisis.
“Ultimately, until people have good information about what these climate-related costs are going to look like, we’re creating new problems every day. I think that’s really the crux of the matter,” Burt told CNBC.
So, why does the U.S. housing market seem to be underestimating the cost of flooding? What does this mean for homeowners and homebuyers in the U.K. and around the world? And what can be done to mitigate this risk?
Watch the video above to find out.
#CNBC #Property #HousingMarket #Floods #ClimateChange #Sustainability
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It's there is a housing crisis on the way then i'm the pope-what A bullshit statement.
It's always the same people behind these things…
In spite of how everyone is frightened and calling the crash, there is already an excessive amount of demand waiting to absorb it, which is another reason it's less likely to happen that way. This forecast was not made in 2008, at least not by the general public, as I will explain below. The ownership rate peaked in 2004, according to the other comment. We reached a peak in the second quarter of 2020 and are currently at the median level. From 2008 to 2012, it fell by 3%, and in the second quarter of 2020, it dropped from 68 to 65.
people actually believe this crap?
Does anybody else think this story is kind of…..a nothing burger?
i've lived thru a couple of these housing bubble collapses, and the cause was always the same, Greed. But now we're saying it's climate change? Man, we're lost. As for Florida being under water by 2060. I'll meet all you right here again in 2060 and i promise, Florida will be firmly fixed on land above still. Just like the polar ice caps are,23 years now after that Economic magazine in 1990 told everyone they'd be well gone by year 2000.
Get a handle on our banks, and our corrupt politicians of BOTH parties. Regulate these friggin corporations, instead of being their lap dogs. That's a start to fixing these continual housing bubbles that are occurring with increased frequency, while our country is sold out from middle class Americans.
Stop your lying.
If you want to be successful financially, if you don't want to be poor, stop saving and develop the high income skill, Develop the side hustle on the side, your job is no longer enough, your business is no longer Enough, you need something.
this is spun like the housing crisis of 2008. But the impact is very different. If you were a homeowner, 2008 meant you lost a ton of value and investors started snatching up property all over the place for really low prices.
So we’re supposed to take the word of some liberal investor? I mean I’m assuming they are liberal, considering the news station that this is on
There is no housing crisis on the way. Flooding or not( There has always been flooding)This vid title is wrong .Besides All the shortcutters and freeloading bankers were burned up and fried in the debacle crisis of 2008. -nice try…..
More Climate Change Bullshyte.
Misinformation central
Wouldn't less housing from flooding make prices go up? And possibly the stocks and markets that make money from housing sales? I could see less money overall being in the markets but people will have to live somewhere. Seems like just more housing would be bought in areas that are undeveloped in the US.
the tories have had 12 years to rebuild the economy with boosting industrys what have they done nowt at least labour created industrys not shut them down.
A COLLAPSE OF MAFIA FED !!!! 🙌🙌
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I cant wait for the bubble to burst. Im a buyer with nothing to buy, because everything is too expensive (meaning not worth buying) we need a 20% cut in property/house prices (notice i didn't use 20% value), current prices dont reflect true value.
In the Uk interest rates will cause a housing price crash first. Don’t believe me? Just watch the disaster unfold in the next 6 to 9 months. I feel so sorry for the people caught up in it. The govt only tool to tackle inflation is to make mortgages so expensive that people start to have their homes repossessed in record numbers. It’s terrible.
Bull’s from this Chanel
Bout time. These houses are not worth that much. And neither is the land.
Home prices increased by 40% in less than 48 months. Why are we acting like that is normal?
Ain’t no way this guy just used the same Jenga reference from the big short movie
Unless builders build regular houses, prices will go UP.
A reduction in inventory will ONLY increase prices.
A reduction in vacation houses will not do anything lolol….
Help the builders build.. please.. duh..
In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
I don't buy it
Mal gerade so am Rande aber bitte um Überprüfung! Mir kommt es eher so vor als sei er ein Selbstmordattentäter Bill Gates. Wie der Pilot der in Frankreich in die Berge flog und alle gern mit in den Tod riss. Er hat ja Microsoft und Internet erfunden vlt ist er auf die Menschheit böse da ihn Geld unglücklich machte würde ihn in U Haft stecken! Hawkin sagte das nicht mit überbevölkerung da er es meinte sondern wegen Bill Gates er kennt sein Plan und meinte es Sarkastisch. Scholz traut daher Putin nicht sie haben das selbe Sternbild. Virgo
Can wall street be shorted.
Fascism is unregulated captiol or greed run amuck. It always self-destructs.
I like report’s technique
No one will be safe, Midwest will experience droughts and extreme weather while coast lines risk flooding and extreme hurricanes and storms. This next DECADE will be determinant of the life of our future generations and maybe even the survival of humans.
When’s the market going to crash I need to get back in the game
In spite of how everyone is frig-htened and calling the crash, there is already an excessive amount of demand waiting to absorb it, which is another reason it's less likely to happen that way. This forecast was not made in 2008, at least not by the general public, as I will explain below. The own-ership rate peaked in 2004, according to the other comment. We reached a peak in the second quarter of 2020 and are currently at the median level. From 2008 to 2012, it fell by 3%, and in the second qua-rter of 2020, it dropped from 68 to 65.
Would have been nice if they talked to the expert in the title more
this is none sense. there are plenty more serious risks to housing market than flodding….
Verizon is the worst company and their internet goes down daily. Use frontier fiber if you have the wiring. Faster cheaper and more reliable!
Why are we talking about flooding when we have an actual financial crisis that was created through covid with poor policy making from global governments 😂
The market has been pretty bad until today it decided to go up. Everyone was practically crying then. She continued to dive. That's what you get when you feel like you can navigate the process on your own. Many thanks to Valentina Morris. I am not worried about how bad the market is because my assets are insured due to your advice and I continue to receive my profits.
I started buying some more stocks at the beginning of the year, but nothing big. Why am I treating this so harshly? Despite others in my sector earning six figures apiece, I'm driven to become the first person in my polygamous family to reach a million dollars. I am well aware of the costs associated with working more to get more money.
Listening to a Brit and a smiling ‘man’ who dyes his hair. Pass
Logical fallacy just because someone one the Lottery does not mean they will win again. It would be nice to say like hay do this or any other important info.
Keep paying your debt checks , there is no crisis , prices are very stable
Florida is a flood risk they knew but hey let’s make this money and let the buyer loose.
Bible reading Floridans need to read again what Jesus told in his parable – Matthew 7:24-27 – Build Your House on the Rock
I feel this would make homes even more expensive because people will move inward away from flood zones and cause a housing shortage.
Is this the international wing of the democrat media?
There is nothing in this that says “how” flooding is estimated but climate is the reason?
it is curious that Burt is so interested in which glasses look better…
The flooding is due to subsidence and blocking of flood plains. It’s not sea level rise.
[6:11] the cost of doing nothing is massive
They are building like crazy in Lee County Florida which is Fort Myers/Cape Coral. Cape Coral had the most canals of any area in the world.