Recent Comments

Yeah, and so the people become shiftless, sort of.

Or the government, and I think the U.S. already has, lost its 'full faith and credit'. Hard to get loans that way!

But the Fed is owned by the banking cartel with a vested interest in maximizing their profits, wealth, and power and with no regard to who they cripple or kill unless it benefits them.
They should have zero power outside their own cartel, and if the cartel is anti-competitive to the economy (which it obviously is) then the cartel should be broken up never to be allowed power again.

I think there's a bit of tweaking going on there! I've always liked probability, it is mathematical in nature, but econometrics and sometimes statistics sometimes seem like, guesswork!

yes. I think TGIF restaurants are about to go through that.

absolutely. at least if I dont own their stock, I am not made to pay for their mistakes. With government debt, I have to pay regardless

Statistics and Probability were a couple of college classes I just could GET. So I have to hand it to the actuaries who get it right. I have no idea how they do it.

And the moral of THAT story is to run the business well!!

Yes, and the value of those shares drops dramatically, once a corporation goes bankrupt. Could be why mergers, acquisitions and buyouts are done often.

the stockholders pay eventually in terms of the value of the shares they own I suppose.

Ever hear of an actuary? An accountant-mathematician who uses statistics and such to 'predict' losses based on the Law of Large Numbers.

Not an exact science, but in the long run, if his numbers are good, and the underwriter knows what he is doing, the company can make a profit.

You are aware that English explorers and discoverers were underwritten by Lloyd's in coffee houses in London, beginning somewhere around the 16th century?

They say you can give a Lloyd's underwriter the bones of a risk, and he can give you a rate off the top of his hat.

Let me add to that, that if an insurance company makes a pretty good profit one year, the next year he can discount his rates and premiums from the actuarial numbers, and so compete from a better position.

The whole election thing looks like its run by the left in honor of josef goebbels of nazi fame. Its disgusting actually.,

I dont think I would like to own an insurance company. you cant really predict the weather or how many accidents people will have, or what injuries they will have... I have to hand it to the companies that ARE out there. Its a tough business for sure

Most likely. There is more to it than that, of course. For one thing, corporate bonds can be secured or unsecured, and even the secured bonds have degrees of surety.

I would have to look this up, but I think because the corporation is a separate entity, the stockholders do not pay the debt if the corporation goes broke: the assets of the corporation are sold to pay that debt.

Or the corporation is sold to another corporation. And the growth of big business begins...

I've seen plenty of cheering pinheads at televised Harris rallies I would not take in longer than a few seconds to protect my aging brain cells.
Trump rallies are always way bigger than those of Harris or Biden despite being beat by the rigged 2020 election.

Yes, it has that quality, of course. However, especially in the case of an industry that pools large sums of money from the public, as insurance does in the case of the payments of premiums which are invested in toto, so as to provide AT THE TIMES NEEDED, funds to pay losses, then rates and premiums must be adequate, as I said before.

When insurance companies compete destructively, or in my conception, pathologically, managers will have a tendency to overlook that basic necessity, and heavy losses to the insurer as well as the insured, will occur. Many insurers will go bankrupt.

This is what happened in late summer of 1982, and was due in part to Reagan's deregulatory policies. Because of the interest rates Volker had imposed in an attempt to fight inflation, which was really only a one-time shock that ran through the economy, insurance companies felt safe in decreasing rates and premiums, feeling sure their investments at those horrendous rates could safely pay all losses that would occur. Then suddenly, Volker decreased the interest rates dramatically. You can guess what happened.

I left about that time because I knew it was going to happen and one reason is that with deregulation and pathological competition, the underwriter lost control of the risk. So even if interests rates had not been drastically lowered, the heavy competition would have resulted in some losses anyway. It is with rates and premiums that underwriters control risk.

And if risk is not controlled, more losses occur, and more of the funds are paid out for losses that didn't need to happen.

When me an old dino goes to vote hobbling along on a cane I'll be carrying a concealed 9mm just like the time before that and the time before that and the time before that~~etc.
I may live in red state Alabama but I also live in Jefferson County in a town that borders a blue Birmingham.
When there, no one has yet to ask who I'm voting for. My ready response will be a calmly stated "It's called a secret ballot."
Should push ever come to shove and it likely won't ever, I also plan to say, "You don't want to see what I carry in my front pocket."
Always be prepared that's all.

If a private company "deficit spends' by issuing bonds, it falls upon the stockholders to pay the bills when they come due. When government deficit spends, it simply uses force to tax the citizens without their consent to foot the bill. That, i think, is evil and should be forbidden. Its the fact that taxes collected by force thats the difference

competition is the savior of the consumer.....

You've got to wonder---I have, at times---is there some intimidation going on by powerful black groups? I thought of Tim Walz, and other Minnesota or Michigan or Wisconsin white guys: are they being intimidated? Is this how Derek Chauvin ended up in prison?

But, term, that is exactly why we have competition.

Not to this degree at any rate. In some cases---I was a finance officer of a small cookie factory when I retired, with some finance background---a corporation can issue bonds and if invested well can pay them back after having grown the company.
Governments, on the other hand, should exercise more care. Treasuries are used on the open market to either decrease or increase the money supply, but there should certainly be a limit to their use, and I believe there is, in the sense of buying and selling. There are several tools the Fed can use to moderate the economy.

Meaning the wealthy stupid white guys donating millions to the wicked witch's campaign and censoring her moronic remarks.

I would dispute a bit on the "equitable" part. The insurance company will charge as much as it can get away with, and still get the customer to actually sign up

its a very evil racket, in my opinion. There should be NO way government can deficit spend

+2,000