Wall Street Mafia: Yeah Basically We Didn't Learn a Thing, Watch This!
we're on the lookout for the next one we swear!
check out our sweet anti-inflation helmet!
*View Master reels for Geithner not included
Remember when Bernanke did that bit on Lessons Learned? Told you it was a sham.
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.
"The bankers," GOD NYT you make it sound so pornographic and scandalous. Oh wait...
Goes to show you that the Wall Street Mafia are happy to securitize everything that isn't nailed down. Paper chases are so much fun to watch.