Dead Insurance Companies.

Posted: Thu Feb 19, 2009 05:57 pm Post Subject:

which are the other insurance companies who are on the verge of final ......g death bead? :wink: :wink:

Posted: Thu Feb 26, 2009 08:44 am Post Subject:

These companies are dead because they violated sound insurance company risk management or sound investment strategies.

#1) AIG

#2) Standard Life Insurance Company of Indiana

#3) Shenandoah Life Insurance of Virginia

Posted: Thu Feb 26, 2009 10:44 am Post Subject:

I really wasn't intending for this thread to be all about AIG.

Let's clear some things up AIG is NOT a DEAD insurance conglomerate.

However, had the United States of America by way of "printing" checks totaling $150,000,000,000.00 ($150 billion) dollars of phony monopoly money and "loaning" that printed money to AIG, then AIG would be in bankruptcy court right now.

AIG wrote bad business with credit default swaps and could no longer pay the massive amount of CLAIMS on that insurance block of business. A credit default swap is where a lender or bank TRANSFERS the RISK of the HISK RISK BORROWER from themselves to an insurance company. Most insurance companies aren't dumb enough to write that type of high risk - high return business EXCEPT.....AIG.

Now when you hear news reports asking where's all this bailout money going and they are just befuddled....it's going into the general account of these firms so they can pay their bills, employee wages, rent, utilities, etc and ALL other expenses of operating a large corporation.

The alternative would be for massive layoffs and it would still cost the government billions upon billions in unemployment compensation.

So if you must know, Bush, Paulson, Bernake, Biden, Obama, McCain and Pelosi made the administrative decision that it would be better for the country to keep people working as much as possible at failed investment firms, banks, (one) 1 insurance company AIG, and two auto companies RATHER THAN have mass unemployment and since massive amounts of fiat currency has already been destroyed with the collapse of Wall St. AND since the cash coming out of Wall St, is being flooded into safe savings instruments there has been and is a huge amount of money being poured into the treasury, allowing the USA Gubment to continue to write checks the can't cash....but they clear them anyway.

Remember...politicians are very intelligent people who produce, promote and protect institutionalized incompetence.

Poli - Tics

Poli: means many...AND tics are blood suckers.

You can't get out of debt by borrowing money.

Posted: Thu Feb 26, 2009 03:21 pm Post Subject:

You can't get out of debt by borrowing money.

Posted: Mon Mar 02, 2009 04:51 am Post Subject:

it's the real conclusion of all this discussion.before putting our money one should look for balance sheet of those institute.(those who know they should do this)

Posted: Thu Mar 05, 2009 06:43 am Post Subject:

Amit, but what about those who don't have knowledge about this.