how citi bailout will impact on insurance sector

by ensurepune » Mon Nov 24, 2008 01:59 pm

what impact will it be on insurance sect from citi's bailout :?:

Total Comments: 3

Posted: Tue Nov 25, 2008 12:59 pm Post Subject:

It's hard to say what the short-term effects of the bailout will be. We've never had a situation like this before when the government dumped massive amounts of taxpayer dollars and taxpayer obligations into bad banks. Make no mistake, we will be paying for the decisions our government is making. Either in the form of cheapened dollars, national debt, or in other ways not calculated.

As for how it will affect the insurance sector, it depends. For one, there's the systemic effects. That's anyone's guess at this point. Two, it depends how each company is tied into the credit mess. AIG for instance had massive amounts of exposure to the re-insurance market. They're suffering because of it. The Hartford may be in trouble. However insurance companies with less reserves in stocks and more in short term debt and other bonds should be less worried.

Posted: Wed Nov 26, 2008 11:46 am Post Subject:

Yaa it's true.We have never faced such kind of situation in our entire life. :oops:

Posted: Fri Nov 28, 2008 10:50 am Post Subject:

I'm with carguy, ensure, that its hard to determine the immediate affect that these bailouts will have on the economy. But it seems to be the plausible solution to the ongoing market crisis. The fund may help the businesses to cover some of the losses that they have suffered because of their bad business decisions. If it helps them to retain their business it somehow would affect the alarming unemployment situation as well.

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