capitalism won’t suddenly get destroyed because insurance companies won’t be able to operate anymore with some regions having houses devalued.
It will. Banks, 100% need insurance, in order to lend money on property. Even if they sell it themselves, or risk is factored into interest rate. Property values in west are high mainly because it has been so easy to get loans. But the total interest rate + insurance + property tax + maintenance represents the carrying cost of owning a home, that when it gets too high, reduces value of homes, and reduces reposession value to bank, and their loan safety, that requires even higher interest rates.
Western banks operate on fractional reserve lending (Trump promises to permit them a lower fraction) where widespread losses require a bailout to avoid bankruptcy. There is a limit to financial credibility, that is some small amount of straw over the current camel’s back. Repeat of 2008 crisis is a great amount of straw.
While that might cause a crisis, it’s in the best interest of the state, central banks, the capitalist class who are the most influential to preserve the capitalist system and do everything in their power to do so. They’re not going to sit idly by - there will be restructuring responding to the crisis, maybe even austerity and bailouts like in 2008 (which, mind you, didn’t end capitalism) - things might get tough, there might be a shock but it by no means would magically bring something like socialism.
Capitalism is a system that’s entirely about social relations: who sells their labor, who owns production and how do these production owners use their accumulated value - this is what has to collapse for capitalism to be destroyed. Financial instruments like insurance exist within this framework, they’re not capitalism itself, they can develop and change and they do so regularly in response to crises.
First capitalism is a euphemism for capital supremacism.
there will be restructuring responding to the crisis, maybe even austerity and bailouts like in 2008 (which, mind you, didn’t end capitalism)
2008 bailouts and QE in US was capitalist supremacism through saving banks. Global warming is simply magnitudes of repeating disasters that makes bailouts too big to be credible such that capitalist supremacism cannot be saved. It’s also not an opportunity for big private sector to buy cheap while waiting for a rebound. Global warming means economic collapse. Furthermore, it’s not “free socialized insurance” for people that can help prevent collapse.
OP could have said “financialized economy” will be destroyed by global warming.
It will. Banks, 100% need insurance, in order to lend money on property. Even if they sell it themselves, or risk is factored into interest rate. Property values in west are high mainly because it has been so easy to get loans. But the total interest rate + insurance + property tax + maintenance represents the carrying cost of owning a home, that when it gets too high, reduces value of homes, and reduces reposession value to bank, and their loan safety, that requires even higher interest rates.
Western banks operate on fractional reserve lending (Trump promises to permit them a lower fraction) where widespread losses require a bailout to avoid bankruptcy. There is a limit to financial credibility, that is some small amount of straw over the current camel’s back. Repeat of 2008 crisis is a great amount of straw.
While that might cause a crisis, it’s in the best interest of the state, central banks, the capitalist class who are the most influential to preserve the capitalist system and do everything in their power to do so. They’re not going to sit idly by - there will be restructuring responding to the crisis, maybe even austerity and bailouts like in 2008 (which, mind you, didn’t end capitalism) - things might get tough, there might be a shock but it by no means would magically bring something like socialism.
Capitalism is a system that’s entirely about social relations: who sells their labor, who owns production and how do these production owners use their accumulated value - this is what has to collapse for capitalism to be destroyed. Financial instruments like insurance exist within this framework, they’re not capitalism itself, they can develop and change and they do so regularly in response to crises.
First capitalism is a euphemism for capital supremacism.
2008 bailouts and QE in US was capitalist supremacism through saving banks. Global warming is simply magnitudes of repeating disasters that makes bailouts too big to be credible such that capitalist supremacism cannot be saved. It’s also not an opportunity for big private sector to buy cheap while waiting for a rebound. Global warming means economic collapse. Furthermore, it’s not “free socialized insurance” for people that can help prevent collapse.
OP could have said “financialized economy” will be destroyed by global warming.