Fox Business host Larry Kudlow unpacks the response to the California wildfires on 'Kudlow.'
Left-wing political failure is destroying California, and that's what Riff is all about. first and foremost, Nightmare in California a natural disaster. No one can control the Santa Ana winds. My own brother and his wife, who live in Hollywood, had to vacate their apartment.
Thankfully, the Hollywood fire was contained and they returned home. When it comes to catastrophic fires like this, there are no heroes. It's always better to be safe than sorry. Unfortunately, there is much evidence to suggest that the leftist politics of politicians in blue-state California compounded the tragedy.
Officials failed to properly refill a reservoir and as a result, several nearby fire hydrants had no water. Before that, the mayor's office actually cut the fire department's budget. Governor Newsom apparently slowed the flow of water that never made it to Southern California to save an elusive fish called smelt. Hear President Trump talk about smell:
California wildfires quickly scrutinized as federal, state regulations hamper mitigation efforts
Former National Security Advisor Robert O'Brien and Rep. Greg Steube, R-Fla., discusses the benefits of acquiring Greenland on 'Kudlow.'
Trump: “Well, it's very sad because I'm trying to get Gavin Newsom to allow the water to come in. If they send it into the Pacific Ocean, you're going to have a lot of water because they're trying to protect a little fish, which in other areas, is called smelt and They have no water to smell”.
Again, this is a tragic nightmare of natural disasters in California. Lives are lost, homes are destroyed, and I'm no expert on all of this, but if the reservoirs are empty, or if the water flows into the Pacific Ocean instead of being piped to fire hydrants – that's a Govt First order error. Many people tell me that California's infrastructure, especially pipes and power systems, has been neglected for quite some time – because all the money has been funneled into so-called climate projects by green politicians.
Maybe if Governor Newsom, Mayor Buss and others had spent more on water and power infrastructure and reservoir management, some of Southern California's tragedies could have been alleviated.
At this point, I'm sure people in the Los Angeles area are more concerned about their safety than the blame game, but it would be useful at some point to do an autopsy and see what went wrong. What can be done better to mitigate this natural disaster.
There is also a financial angle to this story. Early estimates from one of the big banks suggested losses of $50 billion – of which $20 billion would be insured losses. The state of California has a big problem here as well. Some very large home insurers like State Farm and Allstate are pulling back.
State Farm discontinued home insurance last spring. I'm no expert here either, but you have to wonder if they're looking at the same infrastructure issues and assessing the same risks as others – and these insurers decide they don't want to risk blowing their balance sheets or their entire company.
They've got shareholders to answer to, and California state insurance regulators won't let insurance companies charge high enough premiums to cover natural disaster risks, and yes, those premiums keep getting higher, but that's the only way insurance companies can survive if No they come out completely.
Also, California's state insurance regulator called the FAIR Plan is going to take a big hit from wildfire losses, and is going to assess private insurance companies a huge amount, which is private. Company In many cases simply cannot afford to pay.
California was already in the midst of a home insurance crisis before the latest disaster — and what could be the costliest wildfire in U.S. history. This is not unlike the hurricane disaster in Florida. Even as insurance premiums skyrocket, some property values in these hard-hit areas will plummet. I find that the citizens of Southern California are far more concerned about their survival than they are about dollars and cents right now.
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A fact of course is that the nation's highest tax-paying state can do much better than to manage its vital pipes and power systems and its reservoirs and its forests and its insurance system.
I'm going to say what a lot of people are thinking: left-wing politics has failed yet again. If you want to help the people and businesses of California, how about a lot less money for left-wing climate extremists, and a lot more money for improving basic services and fattening the wallets of ordinary working people. That's the riff.
This article was adapted from Larry Kudlow's opening remarks in the “Kudlow” edition of January 9, 2025.