U.S. to Offer Aid to Life Insurers

[Mark]

U.S. to Offer Aid to Life Insurers

U.S. to Offer Aid to Life Insurers - WSJ.com


What do you think about this story?

 

[DT1970]

Thanks for posting that, Mark.

It's enlightening seeing which companies are applying for TARP aid and which maintained their AAA status.

I'm unhappy about the degree to which government is bailing companies out of, in many cases, bad business decisions. They should be allowed to fail, imo.

The failure of the weak and inept keeps the system as a whole strong and healthy. It's that way in nature and it's that way in business. Propping up these companies may allow them to restructure and perform better...or it may just delay their eventual collapse with our tax dollars going down the rathole with them.

Every company that takes money from the government is crawling into bed with a mean spirited and fickle lover. I don't like the idea of government running our private businesses, particularly those in the financial services sector....and that's exactly what happens with all the strings attached to these TARP funds.

 

[Mr. Bill]

"
The life-insurance industry is an important piece of the U.S. financial system. Millions of Americans have entrusted their families' financial safety to these companies, so keeping them on solid footing is crucial to maintaining confidence. If massive numbers of customers sought to redeem their policies, it could cause a cash crunch for some companies. And because insurers invest the premiums they receive from customers into bonds, real estate and other investments, they are major holders of securities. If they needed to sell off holdings to raise cash, it could cause markets to tumble."

Uh, huh. The sky could be falling, too. Doesn't mean that the Obamaton will be able to hold it up.

We have fools running the government. I'm not sure why anyone expects things to be different than they are.

Oh, here's an idea, a 100-year mortgage. Yeah, that'll fix it all.

 

[patch36]

Check out the recipients. All are major Variable Life and Annuity Companies, which are regulated Securities. Pure Life and Fixed Annuity companies are strong and proactively managing their risk. They are carrying over a dollar in assets for every dollar they insure. Banks are backed by a penny for every dollar. Big difference.

98 pct of the insuarnce companies survived the Great Depression. Over 60pct of the banks failed. The sky is falling...

 

[somarco]

Who Wants TARP Money? | Health Insurance 411

 

[insuranceexec]

Check out the recipients. All are major Variable Life and Annuity Companies, which are regulated Securities. Pure Life and Fixed Annuity companies are strong and proactively managing their risk. They are carrying over a dollar in assets for every dollar they insure. Banks are backed by a penny for every dollar. Big difference.

98 pct of the insuarnce companies survived the Great Depression. Over 60pct of the banks failed. The sky is falling...

Very good post Patch. I think the figure on reserves for the banks are off a little; but the substance is still good, and right on.

 

[padthaiforlunch]

Ok, 3% for bank reserves.

 

[patch36]

I have seen figures that with the new $250k FDIC cap the bank reserves are below a penny. Not much difference though between 3¢and 1¢ unless you are a statistician trying to impress us with Drug test results on lab rats.

 

[insuranceexec]

I have seen figures that with the new $250k FDIC cap the bank reserves are below a penny. Not much difference though between 3¢and 1¢ unless you are a statistician trying to impress us with Drug test results on lab rats.

Your point is well taken.............LOL

 

[Guest]

"
The life-insurance industry is an important piece of the U.S. financial system. Millions of Americans have entrusted their families' financial safety to these companies, so keeping them on solid footing is crucial to maintaining confidence. If massive numbers of customers sought to redeem their policies, it could cause a cash crunch for some companies. And because insurers invest the premiums they receive from customers into bonds, real estate and other investments, they are major holders of securities. If they needed to sell off holdings to raise cash, it could cause markets to tumble."

Hmmm. Am I hearing the #1 Rush Limbaugh supporter somehow, sort of, maybe a little, just a smidge, agreeing with the POTUS that government (boo, hiss) regulation (louder boo, hiss) is somehow the correct thing to do?

I thought you would be more in tune with the Limbaugh strategy of just letting the free market fix everything. It seems to me that guys like you would somehow be "happy" if the entire financial structure collapsed as it would probably do without government (boo, hiss) intervention. That's what I hear from Rush each day on the radio (KFBK here in Sacramento.)

Al