This isn't the first place this is happening; there is a reason why the State of Florida is becoming one of the largest home insurer in Florida.
That's because a city can go bankrupt, but a state cannot.
We don't know if a state can or cannot.
Contracts Clause of the Constitution has been interpreted to mean that they cannot. Of course, since SCOTUS have made clear recently that the only thing that matters is what the majority of the sitting bench agree with, they coule overturn their 1977 finding supporting that view... But as of right now, states cannot default on their obligations to creditors, because they cannot do anything "impairing the obligation of contracts."
They shouldn't be allowed to build in flood zones to start with. If they insist on building there, then they need to build the infrastructure to handle the water and bring that area out of the flood zone.
Yeah, the houses will not be "undervalued"
Houses on a floodplain were massively overvalued before, because no one ever thought about the risk. This is just putting them to their actual real value.
it was an incredibly bright idea to parcel out all that floodzone for towns... well done people. very well done.
there is absolutely no reason why people historically liked to build on high ground in flood zones. none at all. they were just ignorant.
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This is the place for discussing the potential collapse of modern civilization and the environment.
Collapse, in this context, refers to the significant loss of an established level or complexity towards a much simpler state. It can occur differently within many areas, orderly or chaotically, and be willing or unwilling. It does not necessarily imply human extinction or a singular, global event. Although, the longer the duration, the more it resembles a ‘decline’ instead of collapse.
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