…and just lend the state money instead. Crist & Company have certainly made it more lucrative for Buffet to avoid the risk of writing Homeowners insurance and just collect money from the citizens of Florida simply for the right to lend them money. So, it looks like Florida is willing to give insurers like Buffet’s companies a guaranteed rate of return but unwilling to give such a guarantee to those insurers actually willing to write insurance in the state and take the risks associated with a hurricane. Gosh, any MBA student at one of their fine state universities could figure out a better way to do this. (Note to Alex Sink: Please save us before it’s too late!)
Wow, now wonder man Charlie is losing sleep? This just proves he been asleep at the wheel when it comes to our issues in Florida when it comes to insurance. Where is the outcry when he spends this kind of money which is due to his demonizing of our industry and doing everything he can to run private carriers out of our state. It is a quandry that on one hand you hope that we get nailed with a massive storm and watch him explain away the massive assesments all Floridians will be saddled with and on the other know it would run what is left of the private market out. I wish he would just take a moment and admit he has put all of us on the railroad track, we just don’t know on what day the train is going to hit.
So now we are paying an origination fee for a loan for money that we can lend (probably at lower rate) to insurance companies in the form of reinsurance !!!
And it is my understanding that a lot of companies are buying this state reinsurance
antway ???
I don’t mind if “end” the Iraq war (as long as we win!), but, why should the government put the money into the economy? Maybe the government should just stop spending our money and pay down some of the debt it has accumulated? (and before you say it’s all due to the Iraq war, I’ll ask you to look back into history and see when our government started deficit spending. It was a long time ago, under a certain Democrate president named Wilson and accelerated greatly during FDR’s term, even before WW2 started. None of our presidents since have done anything to rein that problem in.
Now don’t come here and start presenting facts. We all know that W created deficit spending right before he dreamed up the reasons to attack Iraq. For an idiot he sure fooled a lot of brilliant people…
Richard-
Companies are only buying “reinsurance” (and I use the term loosely) from the Florida Cat Fund because they are mandated to in order to do business in the state. The premiums paid in buy insurance companies are insufficient to cover a loss should it occur any time within the next 5 or so years.
One of the main concerns with the cat fund is that, in the event of a hurricane, the fund will raise capital to pay its claims by selling “catastrophe bonds.” Many analysts feel that the Florida government has overestimated the size of the market for these bonds, and it is hurting the credit rating of the state.
Berkshire Hathaway has done the state a huge favor by guaranteeing a market for the cat bonds.
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…and just lend the state money instead. Crist & Company have certainly made it more lucrative for Buffet to avoid the risk of writing Homeowners insurance and just collect money from the citizens of Florida simply for the right to lend them money. So, it looks like Florida is willing to give insurers like Buffet’s companies a guaranteed rate of return but unwilling to give such a guarantee to those insurers actually willing to write insurance in the state and take the risks associated with a hurricane. Gosh, any MBA student at one of their fine state universities could figure out a better way to do this. (Note to Alex Sink: Please save us before it’s too late!)
Wow, now wonder man Charlie is losing sleep? This just proves he been asleep at the wheel when it comes to our issues in Florida when it comes to insurance. Where is the outcry when he spends this kind of money which is due to his demonizing of our industry and doing everything he can to run private carriers out of our state. It is a quandry that on one hand you hope that we get nailed with a massive storm and watch him explain away the massive assesments all Floridians will be saddled with and on the other know it would run what is left of the private market out. I wish he would just take a moment and admit he has put all of us on the railroad track, we just don’t know on what day the train is going to hit.
God help us all if Charlie gets the Veep job and McSane drops dead! A good reason to vote for Obama!
I can’t disagree that Crist is less than astute, but there sure is no good reason to vote for Obama.
So now we are paying an origination fee for a loan for money that we can lend (probably at lower rate) to insurance companies in the form of reinsurance !!!
And it is my understanding that a lot of companies are buying this state reinsurance
antway ???
No reason to Vote for Obama?
Ive got one – End the wasteful Iraq war and put the money we save into OUR economy! You idiot!!!!!
I don’t mind if “end” the Iraq war (as long as we win!), but, why should the government put the money into the economy? Maybe the government should just stop spending our money and pay down some of the debt it has accumulated? (and before you say it’s all due to the Iraq war, I’ll ask you to look back into history and see when our government started deficit spending. It was a long time ago, under a certain Democrate president named Wilson and accelerated greatly during FDR’s term, even before WW2 started. None of our presidents since have done anything to rein that problem in.
Now don’t come here and start presenting facts. We all know that W created deficit spending right before he dreamed up the reasons to attack Iraq. For an idiot he sure fooled a lot of brilliant people…
Richard-
Companies are only buying “reinsurance” (and I use the term loosely) from the Florida Cat Fund because they are mandated to in order to do business in the state. The premiums paid in buy insurance companies are insufficient to cover a loss should it occur any time within the next 5 or so years.
One of the main concerns with the cat fund is that, in the event of a hurricane, the fund will raise capital to pay its claims by selling “catastrophe bonds.” Many analysts feel that the Florida government has overestimated the size of the market for these bonds, and it is hurting the credit rating of the state.
Berkshire Hathaway has done the state a huge favor by guaranteeing a market for the cat bonds.
Good point Ohion2, Clinton was running a surplus, which lasted right up until Bush, and its been downhill ever since.
Look it up chumps.