Californians lose everything in fire, while PG&E utility company gets bailed out.

As the California camp fire death toll rises to 79 people (hopefully not more to come), although the list of people still unaccounted for is up to 1,300 names and more than 9,800 homes destroyed. The company deemed responsible for starting the fire, PG&E (the largest utility company in California and in the country), PG&E does not have enough money to pay for the damages caused, therefore will get bailed out by California taxpayers.

This past week the California Public Utilities Commission, gave PG&E and their investors a lifeline by implementing a new state law (SB901), wherein utility companies can pass wildfire cost to its customers. Stating that PG&E cannot be permitted to go bankrupt. In other words, the utility company is too important or too big to fail.

The commission's offer of support boosted shares of PG&E by over 30% after losing about 50% of its value since the fires started. If this sounds like the Wall Street banks bailout of 2008. Not only will Californians lose lives, property, and endangerment to their health with the smoke, but they will also cover the cost of the fire damages in the form of higher taxes and higher utility bills going forward. Welcome to Capitalism.


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