Start worrying when the banks stop offering mortgages to people trying to buy property in south beach.
I remember when Katrina flooded New Orleans, lots of people were asking why rebuild the city when it almost certainly will flood like that again. And the answer was a simple, do you know how much it would cost to relocate everyone?
What does it do to the economy when almost everyones largest asset(their house) is worth effectively zero and people still have 20 years on their mortgage.
In my old city (Calgary, Canada) we had a pretty bad flood in 2013. The government made, what I thought was a smart, deal with the home owners.
They would get some government assistence with the condition that this was the first and only time that the governmnet would help.
Some owners rebuilt, others just bulldozed their homes. Now everyone knows where they stand, the government helped shoulder the initial burden and the people who moved helped lower the number of people living in a flood plain.
I remember when Katrina flooded New Orleans, lots of people were asking why rebuild the city when it almost certainly will flood like that again. And the answer was a simple, do you know how much it would cost to relocate everyone?
What does it do to the economy when almost everyones largest asset(their house) is worth effectively zero and people still have 20 years on their mortgage.
In my old city (Calgary, Canada) we had a pretty bad flood in 2013. The government made, what I thought was a smart, deal with the home owners.
They would get some government assistence with the condition that this was the first and only time that the governmnet would help.
Some owners rebuilt, others just bulldozed their homes. Now everyone knows where they stand, the government helped shoulder the initial burden and the people who moved helped lower the number of people living in a flood plain.