< HOME  Monday, September 07, 2009

Death Derivatives: Wall Street Casinos aim to 'securitize' life insurance benefits

Where have we heard this one before? When Wall Street turns the life insurance market into the same toxic mess as the mortgage market and the big banks walk away with hundreds of billions in profits, then let some made up firms default, who's going to be left holding the bill?

Not to worry, since the SEC watchdogs and those sterling reliable ratings firms will do their jobs, right?

Death Derivatives anyone?

Maybe this is the true 'death panels?'
Wall Street Pursues Profit in Bundles of Life Insurance

After the mortgage business imploded last year, Wall Street investment banks began searching for another big idea to make money. They think they may have found one.

The bankers plan to buy “life settlements,” life insurance policies that ill and elderly people sell for cash — $400,000 for a $1 million policy, say, depending on the life expectancy of the insured person. Then they plan to “securitize” these policies, in Wall Street jargon, by packaging hundreds or thousands together into bonds. They will then resell those bonds to investors, like big pension funds, who will receive the payouts when people with the insurance die.

The earlier the policyholder dies, the bigger the return — though if people live longer than expected, investors could get poor returns or even lose money.

Either way, Wall Street would profit by pocketing sizable fees for creating the bonds, reselling them and subsequently trading them. But some who have studied life settlements warn that insurers might have to raise premiums in the short term if they end up having to pay out more death claims than they had anticipated.

Even as Washington debates increased financial regulation, bankers are scurrying to concoct new products.
Yes, our Congress will 'debate' new regs as soon as they finish off that 12 yo bottle of Scotch, topped by a few lines of Peruvian flake and get thru playing with those frisky hookers sent over by Wall Street banking lobbyists.... and find another offshore account to deposit some cash that was donated to their 'election' fund.... and make sure Israel has all the money and weapons it needs to keep terrorizing the ME and continue with its ethnic cleansing of Palestine.

7 Comments:

At Monday, September 07, 2009, Blogger gr1m_reaper said...

when people have more than they need, why don't they do something good with it, rather than try to make money off other people's backs?

 
At Monday, September 07, 2009, Blogger Behan said...

One of the great lies of modern history is that we've been barinwashed into thinking that in order to be happy each person should be a billionaire...and/or that a person who is not "rich" is worthless.

These are all lies which have served the Bankers well but have ruined civilization and left behind a scrapheap in the process.

When I hear about a scheme such as this I get vertigo just thinking about how a human brain could think up such a complex plot. But then I realize that Satanic Jews are behind this....

 
At Monday, September 07, 2009, Blogger ak47 Blog said...

Bundling worthless paper i.e mortgages, insurance, rats, green house gas etc then hawking them as securitized bonds is not a complex mathematical theory. This is basically a 400 year old distraction to hide a child-like simple Pyramid Scam.

http://21stcenturyreversepyramid.blogspot.com/

 
At Tuesday, October 13, 2009, Blogger Ram said...

it's a really nice blog thanks for add my comment...

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At Tuesday, October 13, 2009, Blogger Ram said...

it's a really nice blog thanks for add my comment...

We are here for online bingo store, online bingo reviews, bingo articles, online bingo is so popular you’ll meet lots of new friends. Online bingo store provide you Bingo Reviews, Bingo Store, Bingo Articles and many more. Online Bingo Games

 
At Wednesday, August 25, 2010, Blogger johnas said...

Behan whether you believe or not but still people will move towards money only as it is necessity of our life, and I think to happy as well as luxurious life money is the basic thing.

New Bingo sites

 
At Tuesday, December 21, 2010, Blogger Clint said...

It's sad to hear that there are issues like this in terms of insurance and casinos. Most of the time, we look for a bigger chance without considering the small areas that would eventually affect the whole. Good thing Northern, Calif casinos and even Northern California casino resorts have a monitoring system that minimizes such controversies.

 

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