Business
Commentary: How the Carolina wildfires are, perversely, good news for California
To address the most important point up front: The wildfires currently spreading across North and South Carolina are tragic.
Thousands of acres have been burned by hundreds of fires since Saturday, taking property and placing livelihoods at risk. There are no reports of fire-driven deaths, as yet, but evacuations have been ordered and emergency declarations made. Firefighters continue to struggle to bring the blazes under control. The causes include unusually dry conditions and wind gusts of up to 40 mph.
That said, the Carolina fires may have a positive result that will be felt coast to coast, and especially in California: They’re likely to quell all that stupid talk about attaching strings to federal wildfire disaster relief.
The moment Texas or Florida or Mississippi experiences a disaster, that idea will vanish.
— Sen. Brian Schatz (D-Hi.) on the idea of attaching strings to California disaster aid
That threat has been made by Trump; his disaster czar, Ric Grenell; House Speaker Mike Johnson (R-La.); Sen. John Barrasso (R-Wyo.), a member of that chamber’s GOP leadership; and Rep. Byron Donalds (R-Fla.), among many others. Also pitching in are members of the right-wing peanut gallery, such as Fox News mouthpieces Sean Hannity and Jesse Watters.
What they’ve tend to have in common is a focus on California policies that had nothing to do with the fires in Pacific Palisades and Altadena but have been long-term targets of conservatives and Republicans.
Grenell called for the California Coastal Commission to be “defunded,” for instance. He didn’t explain what that had to do with the fires, but he called its policies “crazy woke left,” whatever that means. (The commission’s authority to regulate real estate development in the coastal zone, thus angering the developers who are among the GOP’s patrons, may have more to do with Grenell’s complaint.)
The others’ points were equally nonsensical. Trump rehearsed his long-discredited claim that California’s water supply has been wasted to serve the interests of the tiny delta smelt, an innocent bystander. Johnson talked of “our concerns with the governance of the state of California,” which he airily blamed for “complicity … in the scope of disaster.” Donalds said that “if a state is so grossly mismanaged that the initial disaster is not quickly contained, then we have a responsibility to do common-sense things.”
On the CBS program “Face the Nation,” Barrasso asserted that “the policies of the liberal administration” in California “have made these fires worse.”
Before examining the natural disasters that have afflicted these blowhards’ own backyards, it’s proper to note that this isn’t California’s first encounter with political shortsightedness on this majestic scale.
In 1905, a flawed canal cut on the banks of the Colorado River produced a massive flood that threatened to destroy the Imperial Valley, which already was producing crops worth $2 million a year. By the mid-1920s, the valley’s efforts had placed a bill before Congress to pay for a high dam on the Colorado to hold back any further flood threats while providing water for irrigation.
The measure ran into opposition from President Coolidge and his Treasury secretary, the multimillionaire Andrew Mellon, who thought private enterprise should take on the task. Across the Southeast, farmers and their elected officials raised further objections. Cotton growers objected to irrigating 1 million acres in the Imperial Valley, corn farmers objected to a million more acres of corn, and wheat growers to a million competing acres of wheat.
But then nature intervened, with a massive flood in 1927 that killed 246 residents of the Mississippi River valley and breached levees along a thousand-mile stretch of the river. Rep. Phil Swing, who had been elected by Imperial Valley voters with the express goal of bringing the dam measure past the goal line, made sure that nobody overlooked the parallels between the 1927 flood and the disaster at home.
Trainloads of New Orleans business and civic leaders came to Washington to plead for relief. “I took on the New Orleans men,” Swing recalled, “putting to them again and again whether they could see any difference between the Mississippi’s flood threat to their people and the Colorado River flood threat to the people of the Imperial Valley.”
Two landmark federal measures were born as a result: the Flood Control Act of 1928, which created a levee construction program costing an unprecedented $300 million, and the Boulder Canyon Project Act, which authorized the construction of a $165-million high dam on the Colorado, eventually to be christened Hoover Dam.
That brings us back to the present day, and the old adage, “What goes around comes around.”
Republican politicians, to be fair, aren’t unanimous about calling for strings to be attached to disaster relief for California. Among the holdouts are many members of the North and South Carolina delegations, in part because the most recent hurricanes to sweep across the region killed 200 people and caused more than $10 billion in damage — and that happened only last September.
“I would ask those folks to put themselves in the same position as people of western North Carolina,” Sen. Thom Tillis (R-N.C.) said of colleagues who have raised the prospect of withholding aid to California. “You got to be consistent on disaster supplement, period.” Congress passed a$100-billion disaster relief bill after the hurricanes, no strings attached.
But other Republicans either have blinders on or short memories. Consider Barrasso’s home state, Wyoming. “Billion-dollar natural disasters are up 360% in Wyoming over the last 20 years,” according to a study funded by LendingTree and cited by LaramieLive.com. The state is especially vulnerable to wildfires, including a wind-blown fire in 2020 that scorched 177,000 acres, destroyed 66 properties and threatened Cheyenne’s drinking water with contamination.
Louisiana, Johnson’s home state? Since 2004, it’s been hit by 13 hurricanes as well as floods requiring federal assistance. If Johnson were to stick with his insistence that “governance” were to be a factor in the disbursement of federal assistance, observes Louisiana journalist Greg LaRose, the state might “no longer be entitled to federal assistance after hurricanes because state policy has allowed the fossil fuel industry to carve up its coastal marshes, making south Louisiana more susceptible to storm damage.”
The Census Bureau reported that Louisiana had the highest percentage of residents displaced by natural disasters of any state in 2023 — about 8.3%, compared with the national average of 1.6%.
Every state in the union has received federal disaster aid in recent years. How many of them would like to see political strings attached to the funding?
(Carnegie Endowment)
Florida? it might as well be called the “hurricane state,” with the damage caused by more than 20 hurricanes requiring federal aid since 2004, including last year’s Hurricane Milton, which brought some $1.5 billion in federal assistance in its aftermath.
Louisiana and Florida ranked first and second in the level of direct assistance from the Federal Emergency Management Agency and other government agencies from 2003 through 2024, according to an aid tracker compiled by the Carnegie Endowment for International Peace. Louisiana received $47 billion and Florida received $28 billion. California was in the middle of the pack, at $7.6 billion. Every single state received some level of federal assistance.
Barrasso, Donalds and Johnson didn’t reply to questions I sent through their congressional offices about their advocacy of attaching strings to assistance.
It isn’t only the cynicism of GOP politicians claiming to know the factors underlying disasters such as the California wildfires; it’s their evident ignorance of what those factors are.
They talk with cocksure confidence about the virtues of clearing forest floors, moving water hundreds of miles to get to the fire zone, to “crazy woke left” coastal policies, and on and on. But they don’t mention the most important factor: global warming, which they would prefer to wish away.
But they must know deep down that they’re spouting partisan claptrap. Sen. Brian Schatz (D-Hawaii), whose home state residents received $660 million in FEMA assistance after the Maui fire of 2023, according to the Carnegie database, knows how asinine, counterproductive and short-lived the idea of conditions on disaster relief will be in the end. “It’s never going to happen,” Schatz told HuffPost. “The moment Texas or Florida or Mississippi experiences a disaster, that idea will vanish.”
Business
iPic movie theater chain files for bankruptcy
The iPic dine-in movie theater chain has filed for Chapter 11 bankruptcy protection and intends to pursue a sale of its assets, citing the difficult post-pandemic theatrical market.
The Boca Raton, Fla.-based company has 13 locations across the U.S., including in Pasadena and Westwood, according to a Feb. 25 filing in U.S. Bankruptcy Court in the Southern District of Florida, West Palm Beach division.
As part of the bankruptcy process, the Pasadena and Westwood theaters will be permanently closed, according to WARN Act notices filed with the state of California’s Employment Development Department.
The company came to its conclusion after “exploring a range of possible alternatives,” iPic Chief Executive Patrick Quinn said in a statement.
“We are committed to continuing our business operations with minimal impact throughout the process and will endeavor to serve our customers with the high standard of care they have come to expect from us,” he said.
The company will keep its current management to maintain day-to-day operations while it goes through the bankruptcy process, iPic said in the statement. The last day of employment for workers in its Pasadena and Westwood locations is April 28, according to a state WARN Act notice. The chain has 1,300 full- and part-time employees, with 193 workers in California.
The theatrical business, including the exhibition industry, still has not recovered from the pandemic’s effect on consumer behavior. Last year, overall box office revenue in the U.S. and Canada totaled about $8.8 billion, up just 1.6% compared with 2024. Even more troubling is that industry revenue in 2025 was down 22.1% compared with pre-pandemic 2019’s totals.
IPic noted those trends in its bankruptcy filing, describing the changes in consumer behavior as “lasting” and blaming the rise of streaming for “fundamentally” altering the movie theater business.
“These industry shifts have directly reduced box office revenues and related ancillary revenues, including food and beverage sales,” the company stated in its bankruptcy filing.
IPic also attributed its decision to rising rents and labor costs.
The company estimated it owed about $141,000 in taxes and about $2.7 million in total unsecured claims. The company’s assets were valued at about $155.3 million, the majority of which coming from theater equipment and furniture. Its liabilities totaled $113.9 million.
The chain had previously filed for bankruptcy protection in 2019.
Business
Startup Varda Space Industries snags former Mattel plant in El Segundo
In an expansion of its business of processing pharmaceuticals in Earth’s orbit, Varda Space Industries is renting a large El Segundo plant where toy manufacturer Mattel used to design Hot Wheels and Barbie dolls.
The plant in El Segundo’s aerospace corridor will be an extension of Varda Space Industries’ headquarters in a much smaller building on nearby Aviation Boulevard.
Varda will occupy a 205,443-square-foot industrial and office campus at 2031 E. Mariposa Ave., which will give it additional capacity to manufacture spacecraft at scale, the company said.
Originally built in the 1940s as an aircraft facility, the complex has a history as part of aerospace and defense industries that have long shaped the South Bay and is near a host of major defense and space contractors. It is also close to Los Angeles Air Force Base, headquarters to the Space Systems Command.
Workers test AstroForge’s Odin asteroid probe, which was lost in space after launch this year.
(Varda Space Industries)
Varda is one of a new generation of aerospace startups that have flourished in Southern California and the South Bay over the last several years, particularly in El Segundo, often with ties to SpaceX.
Elon Musk’s company, founded in 2002 in El Segundo, has revolutionized the industry with reusable rockets that have radically lowered the cost of lifting payloads into space. Though it has moved its headquarters to Texas, SpaceX retains large-scale operations in Hawthorne.
Varda co-founder and Chief Executive Will Bruey is a former SpaceX avionics engineer, and the company’s spacecraft are launched on SpaceX’s workhorse Falcon 9 rockets from Vandenberg Space Force Base in Santa Barbara County.
Varda makes automated labs that look like cylindrical desktop speakers, which it sends into orbit in capsules and satellite platforms it also builds. There, in microgravity, the miniature labs grow molecular crystals that are purer than those produced in Earth’s gravity for use in pharmaceuticals.
It has contracts with drug companies and also the military, which tests technology at hypersonic speeds as the capsules return to Earth.
Its fifth capsule was launched in November and returned to Earth in late January; its next mission is set in the coming weeks. Varda has more than 10 missions scheduled on Falcon 9s through 2028.
For the last several decades, the Mariposa Avenue property served as the research and development center for Mattel Toys. El Segundo has also long been a center for the toy industry as companies like to set up shop in the shadow of Mattel.
The Mattel facility “has always been an exceptional property with a legacy tied to aerospace innovation, and leasing to Varda Space Industries feels like a natural continuation of that story,” said Michael Woods, a partner at GPI Cos., which owns the property.
“We are proud to support a company that is genuinely pushing the boundaries of what’s possible, and are excited to watch Varda grow and thrive here in El Segundo,” Woods said.
As one of the country’s most active hubs of aerospace and defense innovation, El Segundo has seen its industrial property vacancy fall to 3.4% on demand from space companies, government contractors and technology startups, real estate brokerage CBRE said.
Successful startups often have to leave the neighborhood when they want to expand, real estate broker Bob Haley of CBRE said. The 9-acre Mattel facility was big enough to keep Varda in the city.
Last year, Varda subleased about 55,000 square feet of lab space from alternative protein company Beyond Meat at 888 Douglas St. in El Segundo, which it started moving into in June.
Varda will get the keys to its new building in December and spend four to eight months building production and assembly facilities as it ramps up operations. By the end of next year, it expects to have constructed 10 more spacecraft.
In the future, Varda could consolidate offices there, given its size. Currently, though, the plan is to retain all properties, creating a campus of three buildings within a mile of one another that are served by the company’s transportation services, Chief Operating Officer Jonathan Barr said.
“We already have Varda-branded shuttles running up and down Aviation Boulevard,” he said.
Business
How Iran War Is Threatening Global Oil and Gas Supplies
Ships near the Strait of Hormuz before and after attacks began
Every day, around 80 oil and gas tankers typically pass through the Strait of Hormuz, the narrow waterway off Iran’s southern coast that carries a fifth of the world’s oil and a significant amount of natural gas.
On Monday, just two oil and gas tankers appear to have crossed the strait, according to a New York Times analysis of shipping activity from Kpler, an industry data firm. Since then, one tanker passed through.
“It’s a de facto closure,” said Dan Pickering, chief investment officer of Pickering Energy Partners, a Houston financial services firm. “You’ve got a significant number of vessels on either side of the strait but no one is willing to go through.”
Tankers have been staying away from Hormuz since the U.S.-Israeli attacks on Iran that began on Saturday. A prolonged conflict could ripple broadly across the global economy, threatening the energy supplies of countries halfway around the world and stoking inflation.
International oil prices have climbed 12 percent since the fighting began, trading Tuesday around $81 a barrel, and natural gas prices have surged in Europe and in Asia.
A senior Iranian military official threatened on Monday to “set on fire” any ships traveling through the Strait of Hormuz. Vessels in the region have already come under attack. Several oil and gas facilities have also been struck or affected by nearby shelling, though the damage did not initially appear to be catastrophic.
Where ships and energy facilities have been damaged
A fire broke out Tuesday at a major energy hub in Fujairah, United Arab Emirates, from the falling debris of a downed drone, the authorities said. On Monday, Qatar halted production of liquefied natural gas, or fuel that has been cooled so that it can be transported on ships, after attacks on its facilities.
The sharp reduction in tanker traffic is reducing the supply of oil and gas to world markets, pushing up prices for both commodities. And the longer that ships stay away from the Strait of Hormuz, the less oil and gas get out to the world, which could raise prices even more.
Shipping companies have paused their tankers to protect their crew and cargo, and because insurance companies are charging significantly more to cover vessels in the conflict area.
On Tuesday, President Trump said that “if necessary,” the U.S. Navy would begin escorting tankers through the strait. He also said a U.S. government agency would begin offering “political risk insurance” to shipping lines in the area.
In addition to tankers, other large vessels regularly go through the strait, including car carriers and container ships. In normal conditions, nearly 160 make the trip each day.
Some ships in the region turn off the devices that broadcast their positions, while others transmit false locations — making it hard to give a full picture of the traffic in the strait.
The Shiva is a small oil tanker that has repeatedly faked its location, according to TankerTrackers.com, which tracks global oil shipments. It is suspected of carrying sanctioned Iranian oil, according to Kpler. The Shiva was one of the two tankers that crossed the strait on Monday.
The oil and gas that typically move through the strait come from big producing countries like Saudi Arabia, Iraq, Iran and United Arab Emirates, and are exported around the world.
Where tankers moving through the Strait have traveled
In 2024, more than 80 percent of the oil and gas transported through the Strait of Hormuz went to Asia. China, India, Japan and South Korea were the top importers, according to the U.S. Energy Information Administration.
Countries have energy stockpiles that could last them into the coming months, but a continued shutdown of the strait could damage their economies.
Several big disruptions have roiled supply chains in recent years, but the tanker standstill in the Strait of Hormuz could have an outsize impact.
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