With climate change, insurance is soon to become unavailable in the market place. Insurance depends on small events not related to each other, quoting Wiki:
Insurable losses are ideally independent and non-catastrophic, meaning that the losses do not happen all at once and individual losses are not severe enough to bankrupt the insurer; insurers may prefer to limit their exposure to a loss from a single event to some small portion of their capital base.Climate change means catastrophic loss. It means the end of predictable sustainable loss.
Indeed stock markets in general are based on hopeful sustainable returns. One learns in business class that basically a stock price should be the value of the earnings and resale price, taking time and risk into account. Pssst, the values way exceed the expected payments and so the current prices really depend on high resell prices.
An increasingly small number of people hold the world's wealth, which we call the 1% which is actually way smaller than 1%. This group is well connected to each other. It would be easy for panic to spread in this small group.
All that is needed is one big event more significant than the flooding of New Orleans. Which leaves us Florida, with its big expensive cities within mere feet of water of total wipeout. Now you know the real reason for the forbidding of using the words "climate change "with respect to Florida. Normally we would be discussing the expectations that this summer is looking like one of the summers of higher than average temperatures and hurricanes, which given climate change will be spectacular and record breaking. Soon Jeb Bush will be running for president as the governor of the underwater state. Eventually, there will be pressure to stop even government insurance of areas expected to flood repeatedly.
Insurance is just not possible in high expected catastrophic loss. Government will be eventually become the only source of mortgages and relief.
By now, hopefully you have all noticed the significance of today's date - April 1. So this is all the usual April 1st foolishness. Or is it?