Since sub-prime mortgage may not be currently fashionable, our fearless investment bankers are working on a new way to make the public pay them so that they can continue their wasteful life style and their arrogance. The N Y Times wrote about Wall Street bankers pursuing profits in bundles of life insurance...after all, old people will die predictably sooner, won't they? Jenny Anderson wrote on 9/5/09. To read the article, click here.
Apparently there are lots of ways to gamble...especially fulfilling and fun when the money is not your own. Anderson states: "The bankers plan to buy “life settlements,” life insurance policies that ill and elderly people sell for cash — $400,000 for a $1 million policy, say, depending on the life expectancy of the insured person. Then they plan to “securitize” these policies, in Wall Street jargon, by packaging hundreds or thousands together into bonds. They will then resell those bonds to investors, like big pension funds, who will receive the payouts when people with the insurance die.
The earlier the policyholder dies, the bigger the return — though if people live longer than expected, investors could get poor returns or even lose money."
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