David Burt Predicts Climate Change Will Break The Housing Market
If you’re a fan of the “Big Short”, you know who David Burt is. He’s the guy who timely predicted the housing market crash in 2008. Now he’s predicting the housing market is at risk of underestimated climate change.
He claims it echoes lessons from the 2008 subprime-mortgage debacle. Burt makes a climate change and subprime lending connection in a recent interview with Vice:
There’s a lot of parallels, it’s a big real estate mispricing issue. At its core that presents a lot of the same risks. A lot of real estate is massively overpriced and there’s a lot of risks associated with it. The big risk is another foreclosure crisis. Now, it’s a very different dynamic that’s creating the mispricing. But actually magnitude-wise it looks pretty similar, maybe even bigger.