A new round of strong winds ravages, the fire in Los Angeles intensifies, rent skyrockets, and insurance losses expand to $30 billion

The Los Angeles County fire has been ongoing for a week and is still not effectively controlled, compounded by the arrival of strong winds. According to the California Department of Forestry and Fire Protection, as of Monday evening Eastern Time, the Palisades Fire has burned 23,713 acres of land, destroyed over 5,300 buildings, and the containment rate is at 14%, a slight increase from 11% on Sunday. Meanwhile, the Eaton Fire has burned 14,117 acres, causing damage to 7,000 buildings, with the containment rate rising from 27% on Sunday to 33%. Additionally, a new fire outbreak known as the "Car Fire" occurred in the Oxnard area of California on Monday evening, but firefighters quickly took action and successfully contained the spread of the fire. Overall, the fires have burned nearly 40,000 acres of land, destroyed over 12,000 buildings, and resulted in at least 24 deaths. The death toll is expected to rise further. As of Tuesday morning, both the Palisades Fire and the Eaton Fire remain largely uncontrolled, with low containment rates. However, as California suffers from devastating wildfires, a new round of strong winds, which are dry, is approaching. High Temperatures and Strong Winds Intensify Fire Spread The strong winds in the mountainous areas surrounding Los Angeles have increased the risk of fire spread. On Tuesday local time, tropical storm-level winds swept through the area, with gusts reaching up to 60 miles per hour (97 kilometers) accompanied by dry air. The U.S. Storm Prediction Center has warned that approximately 2 million people in the area, including Oxnard, Thousand Oaks, and Simi Valley, face extreme fire risks. The red flag fire warning has been further expanded to include San Diego. The National Weather Service has issued a "Red Flag Warning for Extremely Dangerous Conditions" for Los Angeles County and Ventura County, stating that "this situation is nearly the worst." Despite the critical fire situation, meteorologists expect a possible turnaround in weather later this week. Marc Chenard, a senior forecaster at the U.S. Weather Prediction Center, stated: "Winds may weaken later this week, and by Thursday, wind conditions should improve. This is a gradually diminishing trend, which will help firefighters better control the fire. Humidity levels will also rise over the weekend. Although the weather forecast does not indicate rain, the increase in moisture in the air can slow down the drying of vegetation, thereby reducing fire risks." Although the weather may improve in the short term, meteorological experts warn that future risks have not been eliminated. Weather forecast models indicate that dry and dangerous strong winds may return next week, posing new challenges for firefighting and disaster prevention efforts. Rising Rent in Los Angeles Sparks Public Anger According to CCTV News, many residents in the Los Angeles area of California have been ordered to evacuate to escape the raging wildfires. However, when they sought to rent housing, they encountered landlords raising rents. This chaotic situation following the disaster has left many locals, who have already suffered significant losses in the fire, feeling outraged Local real estate agents admit that current rents are "unprecedentedly high." Some rental prices have even increased by as much as 81%. For example, a furnished four-bedroom, four-bathroom home in the wealthy Bel Air neighborhood of Los Angeles currently rents for $29,500 per month, up from just $15,900 in September 2024, an increase of nearly 86%. The New York Times found through inquiries on a West Los Angeles real estate information website that rents in the area have generally risen between 15% and 64% since January 7. Real estate agents attribute this to the post-disaster "supply and demand relationship," but this explanation has not quelled public dissatisfaction. According to California law, once local governments declare a state of emergency, price increases by suppliers cannot exceed 10%. This restriction applies to small businesses, hotel accommodations, and even concert tickets, which are priced based on supply and demand. Regarding the practice of rent gouging, Los Angeles County District Attorney Nathan Hochman has made it clear that he will take a tough stance against such illegal activities. He stated, "They (rent gougers) will be arrested, prosecuted, and face severe legal penalties." Fire Losses Rise to $30 Billion The Eaton Fire and the Palisades Fire are expected to become one of the costliest disasters in modern American history. Wells Fargo and Goldman Sachs estimate that insurance losses could reach $30 billion, far exceeding JPMorgan's prediction of $20 billion last week. This disaster has had a significant impact on the insurance industry. Wells Fargo analysts noted that home insurance providers such as Allstate, Chubb, American International Group, and Travelers are among the companies suffering the most severe losses from this fire. Additionally, Mercury General and Cincinnati Financial have also been heavily affected. In the face of massive losses and ongoing disaster conditions, California Governor Gavin Newsom has proposed that the state government allocate $2.5 billion for emergency response and post-disaster reconstruction, with some of the funds to be reimbursed by the federal government. President Biden stated at a White House briefing on Monday that Congress needs to allocate billions of dollars to support reconstruction efforts in Southern California. Meanwhile, Los Angeles Mayor Karen Bass signed an executive order aimed at removing cumbersome procedures and bureaucratic red tape to expedite the reconstruction process. Investigations into the cause of the fire are still ongoing. Los Angeles County Sheriff Robert Luna revealed that investigators are examining whether Southern California Edison (a subsidiary of Edison International) caused the Eaton Fire due to issues with its power lines. However, Southern California Edison CEO Pedro Pizarro stated on Monday that internal company data shows no abnormalities with the power lines at the time of the fire. Meanwhile, multiple lawsuits have been filed: On Monday morning, Los Angeles residents filed a lawsuit against Edison International, accusing its power poles of causing the destruction of Altadena. This lawsuit involves homeowners, tenants, and business owners who lost their homes, rental properties, and commercial real estate due to the Eaton Fire Owners in the Palisades area have filed a lawsuit against the Los Angeles Department of Water and Power, accusing it of failing to provide sufficient water supply for firefighters. The plaintiffs claim that local reservoirs have been drained, resulting in low water pressure at fire hydrants, which severely impacts firefighting efforts. The Los Angeles Superior Court website shows that this lawsuit was filed on Monday evening, but the court has not yet fully processed the case