How To Avoid a Botched Insurance Bailout

Insurance Bailout

What is remarkable that once solely only life insurance companies, like Met Life

and Prudential, were allowed to leverage the life insurance accounts so as to engage

in "Bad Bets" ventures. The life insurance accounts are inviolate, but the why for this bailout is a Big Secret, as well as all the other bailouts.

The supposed need for bailouts is not the need for liquidity in the pure sense,

but to stave capital loss for having issued bogus securities that held a guarantee

for reimbursement. The bailouts are to replenish the purses for having to anted up

the bogus securities issued.

Where did the proceeds of the bogus securities go. I wondered why, beginning in

the mid 1990s, how private equity and hedge fund outfits were able to amass

more than a trillion in funds to take public firms private. Examples: Golden State

Holdings, Blackstone Group, Alliance Bernstein, Appollo Mgt. and on and on.

There should be a thousand forensic auditors, rather than Neil Barofsky, examining

in minute detail, how the "Bad Bets" came about, and where the bailout funds went.

Old-timer Democrat of NY @ Apr 09, 2009 20:34:02 PM