Yesterday, former Fed Chairman Alan Greenspan was the keynote speaker at KPMG’s 2014 Insurance Industry Conference Tuesday, where he answered questions such as 1) where the economy is going, 2) why, and 3) when (if ever) is it likely to improve. The answers, as reported by Property Casualty 360, are: 1) nowhere fast, 2) because nobody is willing to invest, and 3) eventually, but nobody can tell when. He listed 9 specific reasons why the "economy stinks", although surprisingly, nowhere did he mention the fact that the current and future economic disaster is all a direct result of his ruinous reign at helm of the Fed where as a result of his "great moderation" and the Fed's catastrophic monetary policies conceived mostly under Greenspan himself, the economy is now perpetually stuck in a boom-bust cycle, and where every time a bubble bursts another has to replace it or else the entire western way of life will be gone in a heartbeat.
Alan Greenspan's Nine Reasons "Why The Economy Stinks" | Zero Hedge
What Greenspan says about Insurance
Nobody appreciates insurance enough.
The insurance industry as we know it - or at least the actuarial mathematics that underpin it - got rolling when two Scottish ministers in the 18th century devised a fund that would take care of their widows, and the actuarial methods they used were pretty spot on and have not really changed that much since. Insurance, Greenspan said, is really nothing more than saving for a rainy day. And insurance, by its construction, is a major form of savings for this country.
“The whole structure of the industry is the mechanism by which you’re converting consumption into savings,” Greenspan said, “and the only way the economy can grow is to save.”
Insurance, he noted, is the most formidable mechanism we have to save as a society, and the economics of insurance have not been given proper weight by economists in how they look at the world. That is why the insurance industry needs to thrive and to be given the support it needs to thrive; getting the optimum amount into savings and investing in cutting-edge technologies are the only real way to get our standard of living to grow. And insurance is at the heart of it.
Alan Greenspan's Nine Reasons "Why The Economy Stinks" | Zero Hedge
What Greenspan says about Insurance
Nobody appreciates insurance enough.
The insurance industry as we know it - or at least the actuarial mathematics that underpin it - got rolling when two Scottish ministers in the 18th century devised a fund that would take care of their widows, and the actuarial methods they used were pretty spot on and have not really changed that much since. Insurance, Greenspan said, is really nothing more than saving for a rainy day. And insurance, by its construction, is a major form of savings for this country.
“The whole structure of the industry is the mechanism by which you’re converting consumption into savings,” Greenspan said, “and the only way the economy can grow is to save.”
Insurance, he noted, is the most formidable mechanism we have to save as a society, and the economics of insurance have not been given proper weight by economists in how they look at the world. That is why the insurance industry needs to thrive and to be given the support it needs to thrive; getting the optimum amount into savings and investing in cutting-edge technologies are the only real way to get our standard of living to grow. And insurance is at the heart of it.
