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  1. #1
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    Municipal Bond Risk

    Interesting article in Barrons about how climate change is presenting risks with certain municipal bonds. They mentioned Miami and said they actually had to mention climate change in a bond offering because the money that will need to be spent to deal with flooding. So this looks like another risk we need to be aware of in addition to credit quality. I have long been worried that they were going to levy an assessment down here to build up all the sea walls. I hope to be out before that hits.

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    #2
    If you take a full glass of water and put an object in it, will the water overflow? Is the ocean rising, or is Florida sinking? Everyone seems to be retiring and moving to Florida.

  3. Member
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    #3
    Quote Originally Posted by Bassin08 View Post
    If you take a full glass of water and put an object in it, will the water overflow? Is the ocean rising, or is Florida sinking? Everyone seems to be retiring and moving to Florida.
    It could be sinking. As the glaciers in the north recede they put less weight on the earth and the magma recedes back. Before the ice age South Florida was a reef. The flooding in Miami is horrible and developers are now buying property further inland in non-flood zones (in areas you wouldn't think people would want to live). Near where I work they had to close a road near the beach and raise it a few feet because the water comes over the seawall now at high tide. They are talking about putting disclosures in real estate contracts now regarding climate change. Whether it is real or not it, it is going to start having an impact on certain stocks, real estate and financing.

  4. Member Finlander's Avatar
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    #4
    Pollution poses a far greater threat than climate change. There is to much conflicting science suggesting that climate change is not as big an issue as the alarmist want you to believe.

    Food for thought:

    If the oceans where rising would that not be true for other parts of the world or just the ocean surrounding Florida and other parts of the United States?

    If the polar caps are melting how do they explain the polar expansion? But they also say Vulcanic activity has little impact on the region.
    2012 Ranger Z519 Comanche - Merc. 225 Pro XS - 24 Razor 4 XL/25 Tempest Plus

  5. Member
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    #5
    Quote Originally Posted by Finlander View Post
    Pollution poses a far greater threat than climate change. There is to much conflicting science suggesting that climate change is not as big an issue as the alarmist want you to believe.

    Food for thought:

    If the oceans where rising would that not be true for other parts of the world or just the ocean surrounding Florida and other parts of the United States?

    If the polar caps are melting how do they explain the polar expansion? But they also say Vulcanic activity has little impact on the region.
    from an investing standpoint it’s not the truth that matters but what people believe the truth is. As for the flooding down here it is real and is having an effect of flood insurance rates. Miami is very low lying so that is why it was identified as an area of high risk. It’s is going to cost billions to fix the infrastructure and drainage. It is having an impact on property values also. I will definitely think twice before buying a bond in certain areas absent a higher interest rate. If enough people believe it’s a risk then it will get priced with that risk.