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True, but so does every USD based business. In some sense ins companies may be at a disadvantage as losses may come in the future at inflated amounts, higher than what they anticipated. In fact, insurance companies have to offer coverage like "inflation guard" to protect covered asset limits against inflation.
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I do not know what the real numbers are. I think most major carriers have a combined under 1. If the entire industry has operated at a loss for 30 years, that is not a good sign for long term investing in insurance companies. But, if thats also true, its not as if they are being kept in business by govt bailout (unlike banks)
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I don't think this is a valid comparison. Both use the term reserves, but in completely different contexts. The key difference between a bank and an insurance company is how they realize or account for their liabilities. For a bank, it has (or should at least) have a 100% value of a liability of any deposit it receives. Meaning, at any given point
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He would say that just like any fractional reserve bank, it is bankrupt by definition.
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sounds like commie talk to me
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I've always felt freedom of speech is a overused "right" that people seem to get wrong. We really don't have natural rights to speech, but natural rights to property. On my own property, I can say or think whatever I want. Even if it is threatening someone else, plotting against someone else, or planning on creating a state. When I'm
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Do you speak for all of Mises.com? I am not so sure all would agree. I doubt many here support any existence of the Fed reserve. Anarchism is a good thing.
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I am wondering if there is anyone else out there currently reading Greenspan's "The Age of Turbulence". This guy is really hard to figure out. He seems to be an embodiment of so many contradictions, yet you must think he is intelligent enough to see them? Here is a good example: On p141 after discussing the fall of the Berlin Wall and
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I think maybe we should quantify worst in terms of the civilian carnage from US actions during their reign. Here would be my rough ranking 1. Truman: A-Bomb on Japan 2. FDR: Fire bombings of Dresden 3. Lincoln: Southern genocidal campaign (march to the sea)
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The discount rate was cut 10 days ago. They dropped the fed funds rate in Aug to prop up the crashing markets. What the chart shows is they are likely offsetting the drop with decreased FOMC purchases. Secondly, how do you define "worked"? In the Keynseian sense all Fed action works in regards to "stimulating" economic activity by