Keep this in the back of your mind when watching markets in the coming days ...

In terms of money:

The 2018 " Campfire" wildfire cost ~$12.5 billion. That was the old wildfire record.

The current wildfires, most often referred to as "Palisades Fires" (even though there are technically five of them), are now estimated (read: educated guesses) to cost $150 to $200 billion. And the fires are still ongoing.

This wildfire is now in the running for the most expensive natural disaster in American History.

So, the financial markets are discussing a POTENTIAL contagion in the Property/Casualty insurance sector and a POTENTIAL extinction-level event for some P&C companies.

The State of California and the City of Los Angeles could face massive clean-up costs, huge subsidies to the affected, and a significant loss of tax revenues in 2025 and beyond. This could lead to significant downgrades of their municipal bonds, POTENTIALLY triggering a contagion in the larger Municipal markets.
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POTENTIAL means this is all fluid, and these statements make many assumptions.

Nevertheless, this is the discussion all weekend.