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Wall Street Journal on life insurance.

Posted by redneckokie1 @ 22:06 on July 25, 2014  

Seems the life insurance industry is having some hard times.  Life insurance is a guaranteed loser for most types of policies.  People are living longer so mortality tables are always outdated. Then comes the question of future value of fiat. 30 years later, the face value has 1/4 of the purchasing power. Now the insurance companies are under water on all those annuities with a minimum interest rate.

Then there is the little problem of all those bonds and derivatives in the reserves to pay claims. Bonds and derivatives are just a promise to pay. Who’s promise to pay?

The whole world is leveraged, cross collateralized, and indebted to the hilt. There is no way this gets paid off. The only question is when the can gets kicked again, where is the wall.


rno, who is so paranoid, he doesn’t trust the pm in his hand!


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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.