MACRO

Climate Change Could Wipe $1.5 Trillion from U.S. Housing Market—Is Your Home at Risk?

Francesca Bolastig, ‘27

By 2055, 84% of all U.S. homes may see a drop in value, totaling $1.47 trillion in losses, according to an analysis by the climate-risk firm First Street. Why is this, you may ask? The reason is climate change. 

While it may be too soon to understand the cost of the Los Angeles wildfires entirely, one thing is clear: the overall insurance cost will increase. As a result, not only the value of real estate in LA is not only at stake – but also the value of real estate across the nation. 

The losses resulting from these wildfires may seem unimaginable as of now. Still, the losses were already a part of a calculation that climate risk experts have been recently modeling as they attempt to measure the effects of climate change on home values in LA and across the country.

“Climate change is no longer a theoretical concern – it is a measurable force reshaping real estate markets and regional economies across the United States,” said Jeremy Porter, the head of climate implications at First Street. 

Climate risk experts have reported that insurance is expected to grow by a national average of 25% over the next 30 years. Let’s break this growth average by cost:

• 14% of this growth average would account for the current underpricing of risk and;

• 11% would account for the increasing climate risk occurring over the next 30 years

The property value impact, on average, is usually only around -3% nationally. Still, a few areas are expected to lose a significant amount of their current value. The report estimates that a dozen counties in Texas, Louisiana, and Florida will cut home values in half.

Dave Burt, founder of investment research and consulting firm DeltaTera Capital, which provides institutional investors and other stakeholders with tools to measure and manage financial risks directly related to climate change, stated that “in the next five years, at least 20% of U.S. homes will be devalued in some way by the effects of climate change.” 

He goes on to say that while in the past, insurers have not increased their prices due to increasing weather events, it is much different now because of the fragility of the system and some of the insurance market failures in the last few years. As growing climate risk ultimately forces the insurance industry to reprice higher, home values will drop – as when the cost of owning a home rises, its value falls. This correction will be severe.

He is supported by Senator Sheldon Whitehouse, D-RI, who says that “the most immediate danger of a major economic collapse is going to come through the insurance industry” and that we’re seeing these dangers in full action already – while the fires in LA are making it worse in California, it’s occurring nationwide, where it is ultimately hard in this day and age to get mortgages and sell properties at value. 

Experts have been warning of this for several years now. Their predictions are coming true faster than previously expected. Growing climate-disaster risk has accelerated much more rapidly than ever, and to clear the market, assets will have to find a new equilibrium.

Meta’s Big Undersea Bet: Bridging Continents or Feeding Sharks?

Mosammad Khanom, ‘28

Subsea internet cables were supposed to unite the world, but mostly ensnared fishing nets and created geopolitical drama. Sharks chew on wires, ships drop anchors, and governments fret about Big Tech listening to their data stream.

Now, Meta will connect the US and India with the world's longest undersea cable—19,000 miles of fiber-optic hope. Faster Netflix, remote work, and more 2 am Reels scrolling. The goal? Expand connectivity in India and Southeast Asia, bringing more people online and expanding Meta’s user base.

But there’s a catch: Meta still needs the approval of several countries to string its cable across their seas. And if history is any guide, that's like asking your neighbors to let you put in a water slide through their lawn—expect red tape, side-eye, and perhaps even a diplomatic spat or two.

Countries worry about data privacy, surveillance, and giving Big Tech a backdoor into their digital infrastructure. Remember when the US nixed Huawei’s 5G expansion over security concerns? This could be round two, under the sea.

Meta says negotiations are in progress, but details are unclear. We know for the time being that a shark somewhere on the planet is gazing at this cable like an all-you-can-chew buffet. And if that shark succeeds, history proves that repair teams will end up for weeks playing the world’s worst game of underwater whack-a-mole.

Will this project join the continents or be another breakage-filled story? Stay tuned—if your Wi-Fi continues.

TECH

Droid Chores Are Here—Just Don't Expect a Tip

Carson Panter, ‘28

MIT's got your back, or at least your sink. Researchers at MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL) are training robots to handle household chores like washing dishes, folding laundry, and even pouring drinks.

Think less Terminator, more Rosie the Robot from The Jetsons. The goal? Affordable, adaptable home assistants that can tackle mundane tasks without a meltdown over a stuck sponge.

How they’re doing it:
MIT's team, led by CSAIL director Daniela Rus, is teaching robots by mimicking simple biological movements. They're studying how creatures like nematodes navigate their world and translating that into efficient, low-cost robot behavior.

But there's a catch—training robots to master even basic chores requires massive amounts of data and computing power. While progress is steady, we’re still a few years away from robots reliably handling your post-dinner mess.

Economic Spin Cycle

If these chore-bots hit the mainstream, they’ll do more than save time—they’ll shake up the economy.

Here’s what could change:

• Time back in your day: Studies show robots could automate up to 40% of household tasks within the next decade, freeing hours for work, leisure, or sleep.

• Workforce shift: Easier home life could boost workforce participation, especially for caregivers and parents.

• Widening gap? While robots could increase efficiency, access might be limited to wealthier households at first, exacerbating economic inequality.

• Job worries: As domestic robots advance, sectors relying on manual labor, like housekeeping, could face disruption.

Bottom Line:

MIT’s dishwashing droids are more than a convenience—they're a glimpse into an economy where time is currency. Whether that leads to a more balanced work-life equation or deepens economic divides depends on how widely (and affordably) these robots roll out.

Now, if only they could do your taxes too.

Musk’s Grok-3 AI Released

Rachel Wanagosit, ‘27

It seems Elon Musk cannot go a day without his name being in the headlines. If it’s new and on the rise, expect Elon’s name to be on it soon. Last Monday, xAI, Musk’s artificial intelligence company launched Grok-3.

How did Grok-3 come to be?

• Grok-3 development was accelerated with use of its Colossus supercomputer and it is  powered by 100,000 Nvidia H100 GPUs (Graphic Processing Units).

• It used 200 million GPU hours for training– 10x more than it predecessor, Grok-2, allowing

• Grok-3 can process large data sets more efficiently.

Is Grok-3 better than ChatGPT or other AIs?

• Grok-3 can generate photos that the free ChatGPT doesn’t feature.

• Is considered more “unhinged” when responding to sensitive or offensive topics like violence or racism. It is more clever in its responses– engaging, but not in a way that is unsafe. Models that aren’t Grok-3 shy away from the topics completely, refusing to answer.

• There was fear that Grok-3 could be a form of right-wing propaganda, but it provided neutral answers on political topics. This is different from other models from OpenAI, DeepSeek, or Meta, who have more detectable political leanings through subtle framing.

• Grok-3 is good at coding and non-mathematical reasoning. DeepSeek and OpenAi prevail when it comes to complex mathematical reasoning.

• Grok-3 responds more objectively and speedily, but is more generic with its responses and needs to improve its depth of research.

iPhone 16e: A Red Flag in Apple’s Relationship with Qualcomm

Armaan Karnad, ‘28

Within the confines of Apple’s new $599 phone is the C1, the company's first proprietary cellular chip. This small device could have huge consequences. 

Historically, Apple has relied on Qualcomm, a semiconductor manufacturer that specializes in wireless technology, for the modem chips in its smartphone products. In recent years, Apple has taken various measures against Qualcomm. For instance, in 2017, Apple sued the chipmaker, alleging that its licensing terms were burdensome and incurred excessive costs. The ultimate goal of Apple’s crusade is to save potentially billions of dollars on the materials and licensing fees associated with doing business with Qualcomm. 

The C1 could be Apple’s big gun in the fight, but the company is far from ready to commit to dropping its longtime supplier, as their in-house chip is pending proper field testing. The brand new Iphone 16e is the perfect opportunity to assess the effectiveness of the chip. Furthermore, the very news of Apple’s in-house cellular chip is enough of a competitive pressure to force qualcomm to accelerate the development of its products. 

It may be tempting to conclude that Apple will drop Qualcomm if the 16e is highly successful. However, it is important to remember that Qualcomm has a greater number of chip patents, giving them flexibility in innovation compared to Apple over the medium run. The only way for Apple to reclaim dominance over its electronic components is to do something they haven’t done in a while: actually innovate.

CONSUMER TRENDS

Rising Inflation: US Overall Inflation Rate Increases to 3% as of January 2025

Sanjana Alam, ‘28

The current inflation rate for the US over a 12-month period is 3%, up from the previous 2.9% rate reported in December of 2024. This 3% rate is higher than the standard 2% inflation rate the Fed aims for. 

The consumer price index, which measures the changes in prices, increased by 0.5%, with the Bureau of Labor Statistics reporting that the index for shelter rose by 0.4%, accounting for 30% of all items index.  Gasoline rose by another 1.8%, food increased by 0.4%, and the energy index increased by 1.1%. The subsequent reported changes will be released in March, which begs the question of whether inflation will continue to grow after the implementation of Tariffs. 

First order of business: What is inflation? Inflation is the rate at which the prices of goods and services increase. With higher inflation, the purchasing power of money decreases, which is why the Fed aims for a standard 2% inflation rate.

The current inflation rate is rising due to various factors, including the housing crisis, supply chain issues, and excess consumer demand. With these three factors combined, inflation has steadily been on the rise and will most likely continue on the same path following the new tariffs the Trump administration recently implemented.

Looking at other goods that increased in price according to the Bureau of Labor Statistics, the four primary goods with the highest price increase compared to December 2024 to January 2025 have been:

• Eggs-surged by a whopping 15.2%

• Video discs/media-rose by 7.2%

• Parking fees-increased by 6.4%

• Fuel oil-rose by 6.2%

Looking ahead, consumers can expect inflation to increase, meaning they might need to plan ahead by adjusting their budgets and spending habits.