Dave Burt, CEO of DeltaTerra Capital and renowned “Big Short” investor who foresaw the 2008 housing crisis, has voiced his concern over a potential repeat of the crisis. His worry is centered on what he sees as an underestimation of the systemic risk flooding poses to the mortgage market.
Burt’s successful prediction of the subprime mortgage crisis and his consequent financial gains while at New York’s Cornwall Capital were documented in Michael Lewis’s bestseller, The Big Short. This work of nonfiction highlighted the events leading to the 2008 economic meltdown.
Years after the 2008 crisis, Burt asserts that the mortgage market is disregarding the risk flooding presents, which could potentially catalyze another housing market crash. DeltaTerra’s studies indicate that 20 percent of U.S. homes have significant exposure to a pricing discrepancy due to flood risks. This discrepancy could devalue the housing market by up to $200 billion from its 2022 valuation of $45.3 trillion….