Move over mortgages. There’s now something much, much bigger to worry about, and harder to curtail, and far more likely to cause the next financial crisis: global warming.
That’s the conclusion of a new report published recently by the Bank of Canada.
Unfortunately for the industry, scientists are predicting that natural disasters, and particularly hurricanes, are going to grow in intensity as the effects of climate change grow. For instance, forecasters are predicting Miami — the twelfth largest metropolitan economy in the United States — will have anywhere from 4 to 8 hurricanes this year. The incidence will only grow over time, as will the chances of unprecedented property damage.
Source: Chris Matthews, Fortune.com