Posted on 09/06/2009 7:40:48 PM PDT by SeekAndFind
Here’s the original article :
http://www.nytimes.com/2009/09/06/business/06insurance.html?_r=2&pagewanted=1
TITLE : Wall Street Pursues Profit in Bundles of Life Insurance
And the seeds for another big crash are sown.
How predictable Wall St. can be, sometimes.
This has been going on since AIDS happened. The people do not have to sell their life insurnace polocies - they can keep them. It is just a secondary market for people to sell their polocies if they want to.
The must be expecting the commie ‘RATS to ram their unconstitutional ObamaCare through.
They must be gambling on 0bamaCare passing.
This like repackaging mortgages? These guys never rest,,,,
This sort of thing has been going on for over 20 yrs.
The states generally do a very good job in regulating insurance companies. The SEC is trying to get involved which is a bad idea. The states do a much better job than the fed.
Life settlement companies just offer to buy life insurance polocies. The holders do not have to sell them. Life sttlements make life insurance more valuable to the policyholders.
In the free market...if you don’t like it, don’t buy it. With a government mandate, so sorry chary. No sale. Get lost fascist.
That a peson will die is a much surer thing than someone with a credit score of 490 will not default on his mortgage.
Just another article clamoring for morgovt control.
Same game new name...at the taxpayer’s expense!
This is exactly what happens when America politicizes economics or practices realpolitiks; risk and benefits are without responsibility.
Ok, let me make this easy for those that do not comprehend Econ 101: Government and “Friends of Government” have now standardized privatizing profits and socializing losses at the taxpayer’s expense.
True, but with crap mortages getting mixed with decent ones, and labelling the whole bundle as good, their next step was to protect the investment by buying politicians to not interfere with freddy and Fannie.
When Goldman Sachs has a *direct* profit motive in hurrying death along in certain sectors, do you *really* believe they wouldn’t do something like buy off congress, and make those Palin death panels come to fruition? Or influence the politicians to create single payer? etc etc,,,
Creating a profit motive in death, when they hold such immense power as G-S does, is a bad thing.
Viatical settlements have been around for quite a while. The only thing securitizing the deals does is to increase the amount of capital available to buy out policies of seriously ill people who need their “benefit” now.
Some insurers offer viatical settlements to their existing policy holders, but the public market for such deals gives the policyholder access to alternative bids so they are not stuck with whatever the insurer will offer. This is a good thing. The insurers would love to be in a monopoly position, so no doubt would quietly support a ban on the public market mechanisms like this one.
What I don’t understand is why there is hostility to this activity of the open market by frequenters of this site. Odd!
Well, we all know what happened to those bundled mortgage loans when people lost their jobs and couldn’t afford to pay the mortgages; what happens if all these sick people suddenly find out they can’t afford to die?
“Creating a profit motive in death, when they hold such immense power as G-S does, is a bad thing.”
Why does this give me an uneasy feeling? The most powerful people in the world betting on death? What influence will they parlay when they own millions of these bets worth hundreds of billions of dollars? Can’t we just send them to Nevada?
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