Destructive wildfires devastate Los Angeles, taking huge economic toll

Los Angeles, Jan 10 Wildfires continued to rage through Los Angeles County, marking a catastrophic 'Black Swan' event of unprecedented scale in the history of the United States' most populous county.

The fires, described as some of the worst in the region's history, have claimed at least 10 lives, according to the county medical examiner's office.

Among the active fires, the Palisades Fire has burned through 19,978 acres (80.85 square km) with just six per cent containment as of Thursday night. Meanwhile, the Eaton Fire has scorched 13,690 acres (55.4 square km) and remains completely uncontained.

For residents like Michael, an accountant in Altadena where the Eaton Fire erupted, the devastation has been life-altering. He was evacuated moments before his home was engulfed by flames.

"It's like living through Armageddon," he said, choking back tears. "We've lost everything."

According to Los Angeles Fire Chief Kristin Crowley, the wildfires, which began Tuesday night, rank among the county's most destructive natural disasters. Over 10,000 buildings have been destroyed so far, primarily due to the Palisades and Eaton fires.

In Malibu, officials reported the first fatality from the Palisades Fire on Thursday. The cause of death remains under investigation. Malibu Mayor Doug Stewart expressed profound sorrow, offering condolences to the victim's loved ones.

"This tragedy weighs heavily on our hearts," he said.

Currently, firefighters are battling four major wildfires: Palisades Fire, Eaton Fire, Sunset Fire in the Hollywood Hills and Hurst Fire in Sylmar.

While some progress has been made in controlling the Eaton Fire, strong winds reaching 100 km per hour have made containing the Palisades Fire particularly challenging. Officials hope calmer weather conditions will improve containment efforts, though the National Weather Service has warned of critical fire weather persisting through Friday night.

The fires have forced the evacuation of tens of thousands of residents, with at least 70,000 homes under threat and 10,000 destroyed. Looting has been reported in some evacuation zones, leading to multiple arrests.

Dorothy, a retired school administrator who had lived in Pacific Palisades for 40 years, lost her home and everything in it.

"The whole area is wiped out. It's just devastating," she said. "Even if there were homes left to buy, they'd cost millions of dollars. Who can afford that?", she told Xinhua news agency.

The entertainment industry has also been severely impacted. Studios like Disney and Universal have suspended filming, cancelled premieres, and closed offices due to fire and smoke conditions.

Early estimates place the economic losses from the wildfires between 52 billion and 57 billion US dollars, exceeding the devastation caused by California's 2018 wildfires. JP Morgan analysts estimate insured losses could surpass 20 billion dollars, making these fires significantly more severe than the Camp Fire, which caused 10 billion dollars in insured losses.

The destruction in high-value areas such as Malibu and Pacific Palisades is expected to further drive costs. Many affected properties were uninsured due to escalating risks and policy non-renewals in wildfire-prone regions.

Experts warn these fires underscore the escalating threats posed by climate change, with far-reaching consequences for California's economy and its strained insurance market.

Despite overwhelming losses, residents and leaders remain determined to rebuild. Firefighters continue their relentless efforts to contain the blazes, while neighbors rally to support one another.

Authorities have urged residents to remain vigilant as winds are expected to intensify, potentially complicating containment efforts.

The devastation caused by these wildfires highlights the urgent need for improved fire management strategies and greater climate resilience to protect communities from future disasters.