Weather’s not a threat to banks
Biden needs to stop lying. Climate change is not a threat to our financial system.
The New York Federal Reserve: “How bad are weather disasters for banks?”
The answer: “Not very!”
Despite Biden’s claims to the contrary it turns out that because the actual size of financial system dwarfs the cost of weather disasters, adaptation to weather reduces the costs of weather disasters, banks understand risks of weather disasters and adjust their rates and loan portfolios to reflect the risk and banks make money on loans that actually increase after weather disasters.
So. Yes climate change exists. No, it’s not a threat to our financial system. And, no it’s not an existential threat.
No comments:
Post a Comment