The next Meltdown

Armistead · 11-24-10, 07:49 PM

It seems the next problem after the bank crisis will be life insurance companies.They're reporting huge losses that , if they continued could trigger a national meltdown. Course a market this big will spill over into
many other investment markets. Many say it would bring the stock market down to levels worse than the last crisis, costing possibly trillions in total losses.

That could wipe out shareholders, who already have suffered declines of 20% to 40% in the past week alone. Customers with annuities or insurance policies might have to turn to state insurance backstop funds and settle for only a portion of the money they were expecting.

Should the government bail out insurance next. If not, are we willing to let a depression take place to correct the issue, taking years with unemployment possibly reaching 30%.

CCIP · 11-24-10, 07:50 PM

You can only keep bailing unsustainable industries out for so long, IMO. Bailouts can't fix faulty business models, they can only buy time.

Tchocky · 11-24-10, 07:51 PM

Quote:

Originally Posted by CCIP

You can only keep bailing unsustainable industries out for so long, IMO. Bailouts can't fix faulty business models, they can only buy time.

As a patriotic Irishman it is my duty to tell you to STFU.

As Tchocky, I agree.

Armistead · 11-24-10, 07:56 PM

Quote:

Originally Posted by CCIP

You can only keep bailing unsustainable industries out for so long, IMO. Bailouts can't fix faulty business models, they can only buy time.

Well, the banking crisis probably will cause the insurance crisis, as many insurance corps invested in the same bad loans with the banks. Basically, they put their money in the same place, so they're already calling for possible bailouts. The insurance companies aren't able to invest like banks, so they're not making mass profits.

Regulators are easing some restrictions, but it's not really helping them, just prolonging the failure.

My guess is because it involves millions of seniors now pulling mass funds off their policies that the government will spend about 500 billion to bail them out.

Buddahaid · 11-25-10, 02:09 AM

Quote:

Originally Posted by Tchocky

As a patriotic Irishman it is my duty to tell you to STFU.

As Tchocky, I agree.

There's whisky in a jar........

TarJak · 11-25-10, 02:21 AM

Quote:

Originally Posted by Buddahaid

There's whisky in a jar........

As long as it's a single malt NP.

11-25-10, 12:03 PM

Quote:

As a patriotic Irishman it is my duty to tell you to STFU.

Don't forget that you should also tell people who think the economy is screwed that they should be killing themselves

Jimbuna · 11-25-10, 12:48 PM

Quote:

Originally Posted by TarJak

As long as it's a single malt NP.

An Irish one even

11-24-10, 07:49 PM	#1
Armistead Rear Admiral Join Date: Dec 2008 Location: on the Dan Posts: 10,880 Downloads: 364 Uploads: 0	The next Meltdown It seems the next problem after the bank crisis will be life insurance companies.They're reporting huge losses that , if they continued could trigger a national meltdown. Course a market this big will spill over into many other investment markets. Many say it would bring the stock market down to levels worse than the last crisis, costing possibly trillions in total losses. That could wipe out shareholders, who already have suffered declines of 20% to 40% in the past week alone. Customers with annuities or insurance policies might have to turn to state insurance backstop funds and settle for only a portion of the money they were expecting. Should the government bail out insurance next. If not, are we willing to let a depression take place to correct the issue, taking years with unemployment possibly reaching 30%.

11-24-10, 07:50 PM	#2
CCIP Navy Seal Join Date: Apr 2005 Location: Waterloo, Canada Posts: 8,700 Downloads: 29 Uploads: 2	You can only keep bailing unsustainable industries out for so long, IMO. Bailouts can't fix faulty business models, they can only buy time. __________________ There are only forty people in the world and five of them are hamburgers. -Don Van Vliet (aka Captain Beefheart)