Insurance: The Canary in the Coal Mine
Original post made by sharon, Midtown, on May 14, 2009
"We can't keep on just borrowing from China,he said, that is true, but another shoe is about to fall that nobody is talking about.
The Insurance Industry------
"Insurance is not only a levered play on credit, but a levered play on the banking system, as the insurers own the bottom of the bank capital structure.
If the banks catch a cold, insurers get the flu.
If banks get the flu, insurers get pneumonia.
And the mechanisms for bailing out insurers are far less clear than those for bailing out the banks.
The high yield rally turned around in a hurry as the market realized what should have been obvious: there is no economic recovery underway.
The Markit High Yield Index, the market's benchmark, fell from 83 to 80 during the past week."Web Link
Iíll have the Kraft Mac n Cheese w/Ketchup, Please
By Max Greenberg | 0 comments | 469 views