Bloomberg has a series of articles called the Insurance Hoax
I hope that you will take time to read it. Based on the articles, it appears that McKinsey consulting has been quite busy counseling insurers how to make more profits at the expense of the insureds. I'm disgusted by the articles.
There is also a wonderful video by Whalen, and analyst (I could not figure out how to link to it) on hedge funds and subprime. A very in-depth and articulate view for just a few minutes.
I hope that you will take time to read it. Based on the articles, it appears that McKinsey consulting has been quite busy counseling insurers how to make more profits at the expense of the insureds. I'm disgusted by the articles.
There is also a wonderful video by Whalen, and analyst (I could not figure out how to link to it) on hedge funds and subprime. A very in-depth and articulate view for just a few minutes.
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6 comments:
The insurance articles are really disturbing.
That said, a few years ago my sister's home was destroyed by fire. The family had terrific insurance which paid every penny of the costs of the new home that was built as well as the family's living expenses during the months that they lived elsewhere while their home was rebuilt.
I can't remember the name of the insurer since I think we all want to buy our home owner's coverage from it!
I have a friend who lives in Mississippi. The stories related to Katrina are very real. Particularly disturbing is the changing of engineering reports as to what was the cause of lose. Essentially it means that they are defrauding the government (since the government pays the flood insurance).
not surprised. reminds me of the time a wind-storm blew down part of the fence in the backyard of the house we were living in at the time (2001). our agent (who we know well) advised us not to claim the few hundred dollars it would cost to repair it, as we would then be "blacklisted," resulting in problems when applying for future coverage. needless to say, we paid for the repairs out of pocket.
2nd_ave
I know this is completely off-topic, but I would appreciate some comments on what this weeks rally means. Last week you all were pretty bearish and were discounting any good news. Leisa, M., others?
Anonon 7:20: This rally is one of two things (1) oversold rally and a continuation of a downtrend or (2) correction in a continuing bull market. Which it is I do not know, and I can assure you that no one else knows with any certainty. However, I can assure you that if you are bullish, you will find bullish opinions, and if you are bearish, you will find bearish opinions. I think that this market is pretty darn sensitive to bad news, and I think that there will be more bad news. GaryK is a good place to listen if you want educated market commentary. My opinion isn't worth much.
anon-
See my post of this morning. As Leisa will tell you, I do not KNOW, just have an educated opinion and a dispassionate model. It says we are not out of danger yet. As you have seen for the last couple of days, the market can do ANYTHING. Besides a 50% retracement is not unsurprising to me. Just the ferocity of it. I think Tim Knight nailed it.
Trading discipline trumps opinion, conjecture and , yes, even good models.
M
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