Margin Call, how much margin we have?
Today I have seen the film Margin Call. I have really enjoyed it, maybe because I do not go too much to the cinema, surelly because the film is absolutelly great. And even if it seems far from climate change issues, it has led me to think in those two aspects:
1.- Before 2008 some people were warning about toxic assets, or financial great risk. I do not know if they were reputed experts or solitary voices (in the film many of the managers say I told you). Nevertheless, we could be in the same position after a climate disaster, saying I told you but nobody did what had to be done. In some cases the risks are only understood by most of the people when it is too late and it looks evident.
2.- Considering the financial turmoil we are in (in Europe specially) due to loses of values of some things we considered more valuables (houses, mortages, debts). What could happen if we suddenly realize that some cities might be under the water not very long? Or that some lands might not be so productive due to climate changes? Or that water supplies might be a real nightmare? I am not an economist, but I have the strong felling that some of the economic negative effects of climate change will become true just when enough people is aware of them even before happening. Because the fears spread out fast in society and economy. And some people still continue to focus on short term cost of carbon emission regulations…