[Note: we explain TMK's new structure from 0:00-10:28, so skip that to get straight into the episode]

We dive into the market for catastrophe bonds (or, “cat bonds”) and talk about how this complex financial instrument is sold as the silver bullet for climate finance — especially for under-developed countries that are at risk of devastation from disasters like hurricanes, floods, earthquakes — which is meant to be an alternative to insurance for places that cannot access or afford policies. In reality, they have given institutions like the World Bank the perfect neoliberal policy for climate (in)action, they have provided extremely lucrative windfalls for hedge funds, and they have left people in devastated regions with nothing to show for their expensive premiums.

••• Pre-order Jathan’s new book! https://www.ucpress.edu/book/9780520398078/the-mechanic-and-the-luddite

••• Subscribe to Ed’s substack: https://substack.com/@thetechbubble

——

••• The Harsh Reality of ‘Hurricane Insurance’ https://www.bloomberg.com/features/2024-jamaica-hurricane-catastrophe-bonds/

••• The Risky Business of Predicting Where Climate Disaster Will Hit https://www.bloomberg.com/graphics/2024-flood-fire-climate-risk-analytics/

••• In Nature’s Casino https://www.nytimes.com/2007/08/26/magazine/26neworleans-t.html

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Hosted by Jathan Sadowski (bsky.app/profile/jathansadowski.com) and Edward Ongweso Jr. (www.x.com/bigblackjacobin). Production / Music by Jereme Brown (bsky.app/profile/jebr.bsky.social)