Yogi Berra called and he says he’s got Deja Vu like it’s the 2008 financial crisis all over again.
In 2008, formerly staid and respectable mortgage lenders found themselves at huge risk from stupid government policies forcing them to lend to people who could not pay back. Never fear, they had spread the risk in the secondary market, which should have had a stabilizing effect, but ended up more like a circular firing squad with banks toppling like dominoes.
History does not repeat, but it rhymes:
In 2021, staid, respectable, and conservative insurance companies suddenly found themselves at huge risk from bad government policies over Covid and adverse reactions to the vaccines, with a statistically improbable increase (average 40%) in insured deaths among prime working age people. Edward Dowd (a former BlackRock stock picker) said in interviews with Steve Bannon and Alex Jones, that life insurers turned to the reinsurance market to diversify their biggest risks, and paid premiums which did not look like a good deal at the time, but may turn out to be brilliant business.
As Dowd said, who will be left holding the bag? Will it turn into a circular firing squad of risk handoffs that will bring down most of the insurance market? Also, insurers do not like to pay out for risks they didn’t factor in – in France, some life insurers are trying to classify death by “voluntarily” taking experimental vaccines as suicide. In the USA it is more likely to become huge litigation against big Pharma, unless the government bails out the insurers.
Actually, it is clear, just as it was in 2008, who will be left holding the bag – the people, through increased premiums, increased taxation, and increased money printing.
As a nice note, an article on TownHall.com asked if the unvaxxed will have the last laugh – what if the unvaxxed, like non smokers, got a better price for life insurance?
Notes:
The Edward Dowd interview on InfoWars. The insurance crisis is discussed about minute 16.
El Gato Malo, AKA Bad Cattitude on SubStack talks about Bayesian Data Crimes making the vaccines appear effective.
