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Photo by Vincente
Excerpt:
As the debris from the explosion of the sub prime mortgage bubble is still settling, the same Wall Street wizards that brought us that disaster are concocting a new exotic financial scheme to recoup their losses. This one involves life insurance policies and now the bailed-out banks are using American’s tax dollars to pull it off.
Wall Street banks intend to take over the broker side of the business by setting up an extensive network of heavily advertised “life settlement” agencies across the country. The settlements will then be “securitized” and packaged into bonds that are sold to super-rich speculators around the globe.
The New York Times reported that “Goldman Sachs has developed a tradable index of life settlements, enabling investors to bet on whether people will live longer than expected or die sooner than planned. The index is similar to tradable stock market indices that allow investors to bet on the overall direction of the market without buying stocks [and] Credit Suisse…is in effect building a financial assembly line to buy large numbers of life insurance policies, package and resell them — just as Wall Street firms did with sub prime securities.”
This may sound like a good way to recover losses from the sub prime debacle, but once again, it is the people on “Main Street” that will pay.
Read more here:
http://www.examiner.com/x-23316-Madison-Independent-Examiner~y2009m10d2-Wall-streets-next-scam