by Lore » Wed 10 Feb 2016, 20:16:40
Outcast_Searcher wrote:Lore wrote:I wrote a post on this some months ago. Insurance companies and banks are presently ignoring their actuaries. Corporate management is still looking at short term goals and gains. The longer the delay the greater the financial route will become.
Why would anybody give out a 30 year mortgage right now in Miami?
In the real world where people buy and sell houses in coastal areas, I know people who are claiming the insurance rates in low lying areas in coastal states are just shocked at how high home insurance rates have gotten in recent years. Maryland and South Carolina to cite two specific states. And they say the insurance companies are blaming climate change risks. It's affecting their asking prices for those who want to sell (i.e. inherited homes).
So how is it that you know that insurance companies are ignoring their actuaries? Credible evidence, or the constant alarmist position that doom is nigh everywhere you look?
Because, as of right now, insurance companies and banks based on the already known risks should not be covering thirty year mortgages on homes. The inundation of a great proportion of coastal areas is a given. That is, ipso facto, nothing will change that.
Loaning money to people who's property will become worthless before the end of the note is eventual financial suicide. The conundrum for them is if they cut off the hand that feeds them now it will produce a real estate panic unprecedented in modern history. They are only buying time before the charade is up.
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
... Theodore Roosevelt