Rs 12891360000000 lost… Los Angeles wildfires could bankrupt debt-ridden United States

As per weather forecasting company AccuWeather, the financial toll of wildfires is expected to range between USD135 billion and USD150 billion.

Los Angeles Wildfires: Known for its beautiful beaches and Hollywood United States’ Los Angeles is battling one of the most devastating wildfires in its history. The unstoppable blazes has claimed as many as 10 lives and burned down hundreds of houses, including luxurious properties belonging to Hollywood celebrities. It is estimated to be the worst wildfire in the history of the United States, with damages exceeding USD135 billion.

As per weather forecasting company AccuWeather, the financial toll of wildfires is expected to range between USD135 billion and USD150 billion. AccuWeather’s chief meteorologist, Jonathan Porter has expressed fear that if the wildfire is not contained soon, the damage could escalate further.

If compared with the wildfire in Maui in 2023, it damaged USD 16 billion of property. Meanwhile, JP Morgan has estimated that the current wildfire in Los Angeles may lead to USD 10 billion in insured losses, primarily affecting homeowners rather than commercial properties.

Notably, more than 10,000 homes have reportedly been reduced to ashes.

Impact On America’s Debt

As per property consultant CoreLogic, more than 4,56,000 homes in Los Angeles and Riverside metro areas are at risk and require approx USD 300 billion for rebuilding. For debt-ridden America, the situation is very critical and dire.

It is to be noted that the US national debt has crossed USD 36 trillion, amounting to 125 percent of its GDP. The country spends nearly USD 2 billion daily on interest payments. Projections suggest the debt could reach USD 54 trillion within the next decade.