Too Many Homes Rest on a Slab of Climate Delusion: Mark Gongloff

Ten years ago, former Treasury Secretary and Goldman Sachs Chief Executive Officer Hank Paulson warned of a “climate bubble,” noting parallels between the housing crisis and humanity’s failure to address global warming. He might not have imagined that, 10 years later, the two problems would merge, Transformer-like, into one super-problem. The only long-term solution appears to be retreat.

Today’s climate bubble is one in which millions of houses across the country are overvalued or possibly worthless because they lack adequate insurance against the large and growing risks of natural disasters. Bloomberg Green recently offered a harrowing introduction to the issue with its first ...