Reach out. Let’s talk.
California is in a “never before seen drought” , a drought that has left one of the countries largest crop producing states trying to find ways to allocate their ever dwindling water supply. For example the city of Coalinga, which has a population of 17,465 who’s average citizen makes 28,158, just paid 1.1M to keep water running. The NASDAQ Veles California Water Index, yes this really exists. In March 2022 enough water to fill half an Olympic size pool cost 215.69 and by September The same amount of water cost 1282 or 600% more. Now you’ll note that we’ve come off our high from September, but that’s only because we’ve entered the winter months where the market is anticipating rain so in short prices are going to go up again. The entire central valley of California, an area bigger than most states is sinking. Nearly 1,200 square miles of California is sinking 2 inches a month – destroying roads, bridges and farmland in the process. Since 1988 the valley has collapsed by nearly 10 feet. Why because the massive water aquifer that lies beneath California has been sucked dry by farmers as a result of the longest protracted drought the state has ever seen. OK so what happens if this goes on for another couple of years and it will. First of all Coalinga is done… they’re on the clock to ghost town central… How many abandoned houses and defaulted mortgages does that mean? As water dries, how many more Colinga’s are out there paying more for a ever dwindling water supply. How expensive will water get…? This my friends is a domino effect that is going to go town by town through the entire state. How many defaults does that mean? Because without water everything becomes a ghost town. Consider California has a population of 39.24M people with over 14M homes. All of those homes and people are defaulted and displaced if it doesn’t rain in the next 2 to 3 years. The consequences are dire. This would utterly destroy the US housing and mortgage markets and that means everyone in the country feels the pain. You always hear that water will one day be more expensive than oil…. I think that starts today and it began in the little town of Coalinga.
