A ‘Big Short’ investor sees financial disaster brewing in housing markets

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?

You may also like

A Practical Guide to Climate-resilient Buildings
This UNEP publication demonstrates how buildings and community spaces ...
Carbon capture: the hopes, challenges and controversies
Once a fringe idea, carbon capture and storage has become a key part ...
Floods, drought and the consequences of extreme weather
Long periods of sunny weather; a few heavy rain showers. That’s all ...
The climate crisis: Can smart ideas save the planet?
Attempts are being made to reduce the CO2 in the atmosphere with ...
Arctic Sinkholes NOVA I PBS
In the Arctic, enormous releases of methane, a potent greenhouse gas, ...
Ian The Storm of the Century
an The Storm of the Century ECO Scout Evaluation. The ECO scouts talk ...
Current fires for Oregon and Solutions ECO Scouts
Be prepared for more fires to come. ECO Scouts is a organization ...
Sustainable Today
Scouts learn about Sustainable Today this is a city in Oregon see what ...
Nature based solutions to the hazards
Scouts learn Nature based solutions to the hazards to climate ...
Page 1 of 4
Scroll to Top