'Big Short' investor warns of housing market crash due to climate crisis and flood risk.
"Big Short" investor Dave Burt warned that mortgage lenders are overestimating the value of homes by failing to take into account the threat of flooding caused by the climate crisis. He warned that the housing market is in for a 2008-level price correction if this pattern continues. Burt's economic hypothesis is that climate crisis-related events could reduce the cost of homes, putting mortgage borrowers at risk of not being able to pay back the loan. He previously warned that about 20% of all houses in the US were overvalued in mortgage underwriting, which means the housing market could be worth up to $200 billion less than current estimates.