FOX Business host Larry Kudlow opens up about the response to the California wildfires on “Kudlow.”
The political failures of the left are ruining California, and that's the riff. First and foremost, Nightmare in California A natural disaster, no one can control the Santa Ana winds. My own brother and his wife who live in Hollywood had to evacuate their apartment.
Fortunately, the Hollywood fire was contained and they returned home. When it comes to catastrophic fires, there are no heroes. It is always better to be safe than sorry. Unfortunately, there is ample evidence that the leftist politics of California's blue state politicians exacerbated this tragedy.
Officials failed to fill a tank properly and as a result there was no water in the fire hydrant in several neighborhoods. Previously, the municipality had actually reduced the budget of the fire department. Governor Newsom apparently cut off a stream of water that never made it to Southern California to save an obscure fish called the Bo. Listen to what President Trump has to say about smells:
Fires in California Rapidly Review Federal and State Laws That Impede Mitigation Efforts
Former National Security Adviser Robert O'Brien and Rep. Greg Steube, R-Fla., discuss the benefits of buying Greenland on “Kudlow.”
Trump: “Well, it's very sad because I've been trying to get Gavin Newsom to let the water come in. If they send it into the Pacific Ocean, you're going to have great water because they're trying to protect a little fish. It just so happens that in Other areas call it smell and they don't have water because of a smell.
Again, this is a tragic nightmare of a natural disaster in California. Lives have been lost, homes have been destroyed, and I'm no expert on all of this, but if the tanks are empty, or if the water flows into the Pacific Ocean instead of being piped to a fire hydrant. the government First-Order Mistake Many people tell me that California's infrastructure, especially the water and power system, has been neglected for some time — in part because all the money has been funneled into so-called climate projects by green politicians. .
Perhaps some of the disaster in Southern California could have been mitigated if Governor Newsom, Mayor Bass and others had spent more on water and power infrastructure and reservoir management.
At this point, I'm sure the people of the Los Angeles area are more concerned about their own safety than the blame game, but at some point it would be helpful to do a post-mortem and see what went wrong. What can be done better to reduce these natural disasters?
This story also has a financial aspect. Initial estimates by one of the big banks indicate a loss of 50 billion dollars, of which 20 billion dollars will be insurance losses. The state of California has a big problem here as well. Some very large home insurance companies, such as State Farm and Allstate, are pulling out.
State Farm discontinued home insurance last spring. I'm no expert here either, but you have to wonder if they're looking at the same infrastructure problems and assessing the same risks — and these insurers decide they don't want the risk of exploding their balance sheets or themselves. The whole company
They have shareholders to answer to, and California state insurance regulators don't allow insurance companies to charge high enough premiums to cover natural disaster risks, and yes, those premiums are getting higher all the time. But that's the only way insurance companies can pay them. live unless they are completely removed from it.
In addition, California's state insurance regulator, the FAIR Plan, imposes large fire damage losses and is set to assess private insurance companies at a higher rate than the private sector. Companies In many cases, they simply cannot afford to pay.
California was in the throes of a home insurance crisis before the recent disaster — and it may be the costliest wildfire in U.S. history. Not unlike the hurricane disasters in Florida. Some property values in these hard-hit areas will drop even as premiums skyrocket. I realized that Southern Californians are more concerned about their survival than they are about dollars and cents.
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One fact for sure is that the highest taxed government in the country could do a lot better than it does in managing its vital pipes and electricity systems and reservoirs and forests and insurance system.
I'm going to say what a lot of people are thinking: left-wing politics have failed once again. If you want to help people and businesses in California, how about a lot less money for left-wing climate extremists, and a lot more money for improving basic services and fattening the wallets of ordinary workers. This is the riff.
This article is adapted from Larry Kudlow's opening commentary in the January 9, 2025 edition of “Kudlow”.