I\’m sure there are all kinds of conspiracy theorists out there, but let\’s keep in mind that Katrina has overwhelmed just about every system imagineable. There is likely to be a slow ripple effect across the entire country as the full effect of this disaster sinks in. For example, the Louisiana state of emergency is extended to January 23, 2006. This means that premiums due to insurers have been delayed for up to six months. Insurers factor investment income into their rate filings and are also regulated in part on cash flow and liquidity. What long term effect on rates is likely due to the virtual cessation of revenue? Likewise with banks and mortgage companies. Also likewise with unemployment compensation funds – legislatures are going to have to appropriate more funds for unemployment, which means either some other program gets cut or taxes are increased. This is simply a huge national disaster and the impact will be felt for a long time and sometimes in unexpected ways.
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The longer the mortgage companies hold onto the money the more interest ($$) they generate for thier own company. Do the insured\’s get the interest?
I\’m sure there are all kinds of conspiracy theorists out there, but let\’s keep in mind that Katrina has overwhelmed just about every system imagineable. There is likely to be a slow ripple effect across the entire country as the full effect of this disaster sinks in. For example, the Louisiana state of emergency is extended to January 23, 2006. This means that premiums due to insurers have been delayed for up to six months. Insurers factor investment income into their rate filings and are also regulated in part on cash flow and liquidity. What long term effect on rates is likely due to the virtual cessation of revenue? Likewise with banks and mortgage companies. Also likewise with unemployment compensation funds – legislatures are going to have to appropriate more funds for unemployment, which means either some other program gets cut or taxes are increased. This is simply a huge national disaster and the impact will be felt for a long time and sometimes in unexpected ways.
You know what they say about money. It always goes too fast and comes too slow.