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alstry (35.64)

Wall Street's Death Casino 9.09

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September 06, 2009 – Comments (19)

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.

http://www.nytimes.com/2009/09/06/business/06insurance.html?_r=1&hp=&adxnnl=1&adxnnlx=1252238534-TcweAE6CEv2B6XgepLHnrQ

If you know a lot of people are going to die early, think about how much money you could make?

If you were going to drive a health care policy that cut off care to the elderly, would that improve your odds?  How about simply cutting off funds so they can't afford medication or health care?

WASHINGTON -- The official poverty rate for Americans 65 years and older has stood for years at 10 percent, the lowest rate among age groups. But the true rate could be nearly twice that high, according to a revised formula created by the National Academy of Sciences that is gaining favor among public officials, including some in the Obama administration.

The NAS formula would put the poverty rate for older Americans at 18.6 percent, or 6.8 million people, compared with 9.7 percent, or 3.6 million people, under the existing measure. The original government formula, created in 1955, doesn't take account of rising costs of medical care and other factors.

 "There are still many millions of older people on the edge, who don't have what they need to get by."

http://www.koco.com/money/20719686/detail.html

If you knew poverty was going to spread across the nation, what impact would that have on families abilities to help their parents?

It can be a very profitable casino when not only can you design the game, but you can participate AND influence the outcome.

A few months ago, Alstrydomous prognosticated that bankers would start betting on whether Americans would die.......many ridiculed the forecast......welcome to 9.09.

What is coming down the road will shock many of you as the bankers remove money out of the system.  In England, bankers bet whether protestors would die......how far off is that here? 

At least you were warned.  Watch how we squirm as the bankers continue cut off credit.....and we keep bonusing them.

Stay Cool Fools....Things are about to HEAT UP!!!!!

19 Comments – Post Your Own

#1) On September 06, 2009 at 8:40 AM, alstry (35.64) wrote:

Just wait unitl millions are forced to sell their 401Ks and IRAs due to lack of money from job loss, wage cut, uninsured illness, rising costs........

After the 10% penalty and ordinary income tax, there ain't much left after government gets its cut.......

Fools,

How hard is it to see what happens to a massively overleveraged society and you cut off credit that was the life blood of that nation's economy?

Everything eventually crashes....except for those you bail out.

 

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#2) On September 06, 2009 at 8:41 AM, tfirst (28.96) wrote:

The thing they are overlooking is the fact that most of the people they are about to let die, aren't wealthy enough to own life insurence policies.

Torches and pitchforks....

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#3) On September 06, 2009 at 8:46 AM, alstry (35.64) wrote:

THIS IS 9.09....PREPARE FOR IT!!!!

Budget-battered school districts must try to salvage education for more than one million children whose lives are filled with insecurity and turmoil.

Charity is one child in a national surge of homeless schoolchildren that is driven by relentless unemployment and foreclosures. The rise, to more than one million students without stable housing by last spring, has tested budget-battered school districts as they try to carry out their responsibilities — and the federal mandate — to salvage education for children whose lives are filled with insecurity and turmoil.

http://www.nytimes.com/2009/09/06/education/06homeless.html?hp

It is not hard to forecast what will happen to a nation when the citizens bail out the bankers and the bankers tighten credit and raise interest rates on the citizens.

And some of you think Alstry is annoying each time he posts fact after fact after fact after fact documenting the consequences.

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#4) On September 06, 2009 at 8:49 AM, alstry (35.64) wrote:

tfirst,

perception only affects the price/odds of the policy at the origin of the contract....reality is what affects the return.

There are a lot of elderly people with very large life insurance contracts......why do you think the buildings of banks and  insurance companies are always among the tallest in most towns.

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#5) On September 06, 2009 at 9:35 AM, alstry (35.64) wrote:

AMERICA CONTINUING TO SHUT DOWN!!!!!!!

CANTON —

The single largest service cut in the history of the Stark Area Regional Transit Authority takes effect Sunday.

SARTA buses are parked and will remain that way until Tuesday because service on Sundays and holidays has ended.

The agency made good on its promised cuts, voted upon by its board of directors in July. They include the layoffs of 19 drivers, fare increases and route changes.

http://www.cantonrep.com/news/x1750351906/SARTA-cuts-service-raises-fares

Ever need food or medication on Sunday or a holiday?

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#6) On September 06, 2009 at 9:47 AM, throwerw (29.48) wrote:

good god, they took away money we needed to live and are using it to bet that we die sooner!

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#7) On September 06, 2009 at 9:53 AM, alstry (35.64) wrote:

When Bankers Drain Money out of an OVERLEVERAGED economy.....

EVEN THE HOMELESS HAVE NO PLACE TO CAMP....

East Providence - Dozens of homeless who formed a high-profile tent city called Camp Runamuck are packing up and moving for the second time this summer, facing a Tuesday deadline to clear out their latest campsite under an East Providence highway bridge.

The homeless were headed this weekend to two new locations, one a carefully selected plot of city-owned land near Roger Williams Medical Center in Providence, the other on private property in Providence.

Neither spot provides a permanent home for the roughly two dozen people who have been living under the I-195 Washington Bridge since being evicted from their first location in Providence earlier this summer. A lawyer for the city has already said any encampment on city land won't be tolerated.

http://www.theday.com/re.aspx?re=b433cfc4-8ddf-441b-a605-063812194976

From Rhode Island to Sacramento...the homeless have no place to rest as we bail out the bankers.

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#8) On September 06, 2009 at 10:09 AM, alstry (35.64) wrote:

THE CUTTING NEVER EVER STOPS WHEN THE BANKERS DRAIN THE MONEY.........

Miami isn't the only local college cutting back. The University of Cincinnati, the region's biggest, will cut about 120 jobs during this academic year on its main campus, including laying off about 63 current employees.

Northern Kentucky University eliminated 16 jobs for this year but doesn't plan any more reductions.

Hodge said more than 80 percent of universities nationally are cutting their budgets at least 5 percent. And all of the public universities in Ohio are continuing a freeze on tuition this year.

http://news.cincinnati.com/article/20090905/NEWS01/909060325/Miami+U.+to+continue+layoffs

The key words above are AT LEAST 5%.....those cuts will lead to less income, less taxes paid, and less consumption leading to even more cutting as money keeps getting drained and we bonus the bankers billions.

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#9) On September 06, 2009 at 10:31 AM, alstry (35.64) wrote:

The September Slasher is a Party Basher!!!!!

- Final numbers from 2008 showed that a nearly 5 percent increase in city expenditures outpaced revenue growth of 3.4 percent.

- Finance officers project revenues will shrink by almost 0.5 percent while spending will grow almost 2.5 percent.

- Impacts on city budgets stem from rising costs to provide services and employee-related costs for health care, pensions and wages, among other budget challenges tied to declining conditions in local economies.

- Nearly 90 percent of city finance officers report their cities are less able to meet fiscal needs in 2009 than the prior year.

http://www.desmoinesregister.com/article/20090906/NEWS/909060334/1001/

REVENUES SHRINK BY ONLY 0.5%???

No wonder revenues are coming in way below expectations.....and more and more workers are getting fired.

Corporate taxes are DOWN by over 60%.....sales taxes down in the double digits........personal income taxes down 20%......and city finance officers projecting only 0.5%????

It seems few are prepared.......for the Zombulator.

 

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#10) On September 06, 2009 at 11:02 AM, alstry (35.64) wrote:

WHEN $$$ EVAPORATING..ONLY BLEAK CHOICES REMAIN

With a decision to keep taxes down, Miami-Dade commissioners now must gut $444 million from the budget in an exercise offering bleak choices.

Miami-Dade commissioners, walking a political tightrope between cutting taxes and gutting public services last week, chose to keep tax bills down.

Now they must decide how to fill the $444 million budget hole they opened with that 4:30 a.m. vote Friday. On Sept. 17, they'll adopt a budget blueprint that will most likely include layoffs, pay cuts, diminished county services and nightmarish reductions for agencies that depend on government funding.

http://www.miamiherald.com/460/story/1220112.html

My friendly Fools....soon you too will realize that when bankers cut off credit to an overleveraged economy....very few are spared unless you are bailed out.

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#11) On September 06, 2009 at 1:24 PM, Buckaneer (< 20) wrote:

Alstry.

 Correct about the crashing to come. However, your timing is HORRIBLE, as has been mine. In other words, the DOW is likely to get to at least 10,000 with the S&P to 1100 through this year - all the money be thrown at it from govt. Your predictions of stock market re-drop will not happen until 2010. I have learned that timing is everything, and your SUCKS.

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#12) On September 06, 2009 at 1:32 PM, alstry (35.64) wrote:

Buck,

If the last six months is the measurement...then sucks is an understatement.

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#13) On September 06, 2009 at 1:44 PM, DaBronxBull (30.46) wrote:

five bank closures friday dosn't even warrent a headline anymore?

off topic: anyone view Loose Change ( 9/11 )  on utube

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#14) On September 06, 2009 at 2:37 PM, awallejr (81.59) wrote:

While not my area of expertise, I was under the impression that a person or entity needs a legitimate "insurable interest" in order to maintain a life insurance policy on another. Husband/wife for example or a company maintaining one on a key employee. 

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#15) On September 06, 2009 at 2:48 PM, prose976 (< 20) wrote:

Securitized Life Settlements is a sick idea that can lead down some dangerous roads.

As far as government shutting down, I say, "Let is close, let is close, let it close."

The more government shuts down, the less dependent the populace becomes, and subsequently the economy, becomes on big government to sustain itself.

It will take a fairly long time, but eventually, the base of our economy will become more privatized, which is a positive move.

Now, we just need to get all the "tenured" clowns out of Congreess/Senate, local and state government.

 

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#16) On September 06, 2009 at 4:54 PM, alstry (35.64) wrote:

pro...

Under our current structure...if government shuts down, so does half to 3/4 of America.......

I have no problem with that outcome as it creates a durable foundation from which to grow....

however, to bailout out the bankers and let the nation rot while Benny Bin Laden is telling all that everything is fine is FU(k)ing sociopathic.

awa,

I believe it is an assigned interest...but that is more or  less a guess.

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#17) On September 06, 2009 at 7:11 PM, truthisntstupid (85.02) wrote:

Will they have a direct stock purchase plan?  What's the minimum initial investment and additional optional cash purchase amount?   I bet these could really pay some good dividends.  Where can I find out more?

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#18) On September 06, 2009 at 11:02 PM, chiragpatnaik (20.12) wrote:

@ awallejr 

 Well there is a way around it. As long as the initial policy was bought by the individual, and the premia continue to go out from under his  name(or someone with an insurable interest, the policyis fine.

 

This could become like an annuity paid to the person paying the premia. 

 

You can look forward to people forcing life insurance on terminally ill and old people. Quite like the (I think) CDS.

 

How hard is it to imagine that if the liability increases to an unsustainable level that someone underwrting this gets the bright idea to close settle the deal.

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#19) On September 07, 2009 at 12:09 AM, semper77 (32.61) wrote:

This is the most horrible thing that I've read all month. I can't believe that I live in country that would allow this - especially in light of what's gone on over the past several years.

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