390. We All Live in the Firestorm

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Jan 19, 2025

The discussion dives into the intersection of the LA wildfires and the finance, insurance, and real estate industries. It reveals how landlords exploit crises to hike rents and investors seize damaged properties at bargain prices. The podcast critiques the insurance industry's victim narrative while raising rates and denying claims. It also sheds light on systemic inequalities that facilitate gentrification and predation post-disaster, all while offering humorous takes on cultural misunderstandings and the tech trends in learning Mandarin.

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ANECDOTE

Real Estate Vultures in Altadena

Real estate speculators are targeting Altadena, a historically Black community devastated by the LA wildfires.
They're exploiting the crisis by offering deeply discounted prices for fire-damaged properties, mirroring predatory practices seen after Hurricane Katrina.

INSIGHT

Disaster-Induced Gentrification

Disasters like wildfires and hurricanes create opportunities for predatory investors to acquire properties at low prices.
This leads to gentrification, displacement of long-term residents, and cultural loss, as seen in post-Katrina New Orleans.

ANECDOTE

Exploiting Housing Shortages

Landlords are already increasing rents in LA, exploiting the post-wildfire housing shortage.
This mirrors post-Katrina New Orleans, where rents surged by 33%, demonstrating a pattern of predatory pricing during crises.

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[Due to the relevance of this episode — and requests from listeners in LA — we decided to make this week the free episode.] We get into the crossover between the LA wildfires and the FIRE industry – finance, insurance, real estate. Where most people see a hellscape of risk and loss, the FIRE industry also sees a landscape of opportunity and profit. First are reports of landlords and investors never letting a good crisis go to waste as the latter jack up rents for people who need places to stay after losing everything, while the former snatch up burnt homes using the discounts code “devastation.” Second we then get into the simple narratives and material dynamics of how the insurance industry is dealing with the wildfire’s aftermath by leaning into their victim complex while also hiking rates, restricting policies, denying claims, and agitating for regulatory changes. ••• We All Live in the Firestorm: Infinite Crisis and the LA Wildfires https://thetechbubble.substack.com/p/we-all-live-in-the-firestorm-infinite ••• Real Estate Vultures Eye Middle-Class Enclave of Ravaged LA https://www.bloomberg.com/news/articles/2025-01-15/fire-ravaged-altadena-attracts-real-estate-vultures-eyeing-deals ••• Experts say Los Angeles rental prices will ‘inevitably’ spike post-wildfires https://fortune.com/2025/01/11/los-angeles-rental-prices-will-inevitably-spike-post-wildfires-experts/ ••• The costly calamity in Los Angeles https://www.ft.com/content/1ada4ad5-d992-42a2-89d9-99063883f91d ••• L.A. Is Burning. Will Insurance Companies Take Advantage? https://newrepublic.com/article/190048/california-insurance-los-angeles-fires ••• We Will All Be Paying For L.A.’s Wildfires https://www.levernews.com/we-will-all-be-paying-for-l-a-s-wildfires/ Standing Plugs: ••• Order Jathan’s new book: https://www.ucpress.edu/book/9780520398078/the-mechanic-and-the-luddite ••• Subscribe to Ed’s substack: https://substack.com/@thetechbubble ••• Subscribe to TMK on patreon for premium episodes: https://www.patreon.com/thismachinekills Hosted by Jathan Sadowski (bsky.app/profile/jathansadowski.com) and Edward Ongweso Jr. (www.x.com/bigblackjacobin). Production / Music by Jereme Brown (bsky.app/profile/jebr.bsky.social)