GIVE US$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Posted On: January 4, 2008, 12:44 pm CST
Posted By:
Comment:
When there’s a disaster, the companies homeowners count on to protect them from financial ruin routinely pay less than what policies promise. Insurers often pay 30-60 percent of the cost of rebuilding a damaged home–even when carriers assure homeowners they’re fully covered, thousands of complaints with state insurance departments and civil court cases show.
Paying out less to victims of catastrophes has helped produce record profits. In the past 12 years, insurance company net income has soared–even in the wake of Hurricane Katrina, the worst natural disaster in U.S. history. Property- casualty insurers, which cover damage to homes and cars, reported their highest- ever profit of $73 billion last year, up 49 percent from $49 billion in 2005, according to Highline Data LLC, a Cambridge, Massachusetts-based firm that compiles insurance industry data.
The 60 million U.S. homeowners who pay more than $50 billion a year in insurance premiums are often disappointed when they discover insurers won’t pay the full cost of rebuilding their damaged or destroyed homes. Property insurers systematically deny and reduce their policyholders’ claims, according to court records in California, Florida, Illinois, Mississippi, New Hampshire and Tennessee. The insurance companies routinely refuse to pay market prices for homes and replacement contents, they use computer programs to cut payouts, they change policy coverage with no clear explanation, they ignore or alter engineering reports.
This is exactly what Greenberg wanted. All he cares about is the stock price and his investment value. Time to hold AIG’s feet to the fire and demand asset sales to repay this embarrasingly huge loan!
Man, I could’ve come up with a revised bailout plan for them in five seconds:
1). ask for more money without actually selling any assets.
2). Take “motivational retreat.”
3). Attempt to renegotiate loan rate.
4). Not pay back loan.
5). Repeat as necessary.
Did you see any indication that AIG is really going to sell any asset. All I heard in their press statement is what they are going to keep. Get use to AIG being owned and operated by the Feds.
Meet your new Health insurance Company
AIG-DC.
Fannie/Freddie/AIG/9 Banks. = Socialism on its way.
Liddy says, “These measures will also put AIG on track to emerge as a nimble competitor with good long-term growth prospects.” Who is AIG going to be competing with? Those other insurers who are not getting bailouts? Face it, AIG has no competition and if competition does spring up, the government will drive them out of business.
And nimble? How can a dinosaur that can’t even get out of its own way and can’t survive without sucking billions from the taxpayers be described as “nimble?”
the people that want some of the assets cannot get the financing to do the deals….the credit markets are frozen….the people like Buffett who have the capital are waiting to feed on the dead animal…looks like they may have to wait. Do you really think in this climate the sales would be from a willing buyer and seller? Let the assets season along with the market…in time the returns will more than make the taxpayers “whole” patience is a virtue last time I checked.
Why wasn’t patience shown to Lehman Brothers? Why shouldn’t they have been saved? AIG should have been allowed to file chapter 11 and the fed’s responsibility should have been to closely manage that process. Instead there is a $150B life-line with absolutely no clear plan in place to repay it. Guarantee they come back for more $ within the next 6 months.
Who wins in the long run? The same party who is controlling the strings – – Goldman Sachs. They control Paulson, he allows Lehman to go under (Goldman is thrilled), they save AIG (who is insuring much of Goldman’s exposures). Sounds like a win for them.
Ralph, I haven’t laughed harder in weeks. I think you should be AIG’s next CEO when the current one fails to save AIG from this mess. At least your plan is feasable.
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GIVE US$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Posted On: January 4, 2008, 12:44 pm CST
Posted By:
Comment:
When there’s a disaster, the companies homeowners count on to protect them from financial ruin routinely pay less than what policies promise. Insurers often pay 30-60 percent of the cost of rebuilding a damaged home–even when carriers assure homeowners they’re fully covered, thousands of complaints with state insurance departments and civil court cases show.
Paying out less to victims of catastrophes has helped produce record profits. In the past 12 years, insurance company net income has soared–even in the wake of Hurricane Katrina, the worst natural disaster in U.S. history. Property- casualty insurers, which cover damage to homes and cars, reported their highest- ever profit of $73 billion last year, up 49 percent from $49 billion in 2005, according to Highline Data LLC, a Cambridge, Massachusetts-based firm that compiles insurance industry data.
The 60 million U.S. homeowners who pay more than $50 billion a year in insurance premiums are often disappointed when they discover insurers won’t pay the full cost of rebuilding their damaged or destroyed homes. Property insurers systematically deny and reduce their policyholders’ claims, according to court records in California, Florida, Illinois, Mississippi, New Hampshire and Tennessee. The insurance companies routinely refuse to pay market prices for homes and replacement contents, they use computer programs to cut payouts, they change policy coverage with no clear explanation, they ignore or alter engineering reports.
This is exactly what Greenberg wanted. All he cares about is the stock price and his investment value. Time to hold AIG’s feet to the fire and demand asset sales to repay this embarrasingly huge loan!
Man, I could’ve come up with a revised bailout plan for them in five seconds:
1). ask for more money without actually selling any assets.
2). Take “motivational retreat.”
3). Attempt to renegotiate loan rate.
4). Not pay back loan.
5). Repeat as necessary.
Did you see any indication that AIG is really going to sell any asset. All I heard in their press statement is what they are going to keep. Get use to AIG being owned and operated by the Feds.
Meet your new Health insurance Company
AIG-DC.
Fannie/Freddie/AIG/9 Banks. = Socialism on its way.
Liddy says, “These measures will also put AIG on track to emerge as a nimble competitor with good long-term growth prospects.” Who is AIG going to be competing with? Those other insurers who are not getting bailouts? Face it, AIG has no competition and if competition does spring up, the government will drive them out of business.
And nimble? How can a dinosaur that can’t even get out of its own way and can’t survive without sucking billions from the taxpayers be described as “nimble?”
the people that want some of the assets cannot get the financing to do the deals….the credit markets are frozen….the people like Buffett who have the capital are waiting to feed on the dead animal…looks like they may have to wait. Do you really think in this climate the sales would be from a willing buyer and seller? Let the assets season along with the market…in time the returns will more than make the taxpayers “whole” patience is a virtue last time I checked.
Why wasn’t patience shown to Lehman Brothers? Why shouldn’t they have been saved? AIG should have been allowed to file chapter 11 and the fed’s responsibility should have been to closely manage that process. Instead there is a $150B life-line with absolutely no clear plan in place to repay it. Guarantee they come back for more $ within the next 6 months.
Who wins in the long run? The same party who is controlling the strings – – Goldman Sachs. They control Paulson, he allows Lehman to go under (Goldman is thrilled), they save AIG (who is insuring much of Goldman’s exposures). Sounds like a win for them.
Ralph, I haven’t laughed harder in weeks. I think you should be AIG’s next CEO when the current one fails to save AIG from this mess. At least your plan is feasable.
Jeff, because Leman is not systemically important in their sector….nothing changed when they went under. It is political/economical Darwinism….