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Posts tagged ‘Insurance’

The Super-priority Status of Derivatives

by Ellen Brown

The big risk behind all this is the massive $230 trillion derivatives boondoggle managed by US banks. Derivatives are sold as a kind of insurance for managing profits and risk; but as Satyajit Das points out in Extreme Money, they actually increase risk to the system as a whole.

In the US after the Glass-Steagall Act was implemented in 1933, a bank could not gamble with depositor funds for its own account; but in 1999, that barrier was removed. Recent congressional investigations have revealed that in the biggest derivative banks, JPMorgan and Bank of America, massive commingling has occurred between their depository arms and their unregulated and highly vulnerable derivatives arms. Under both the Dodd Frank Act and the 2005 Bankruptcy Act, derivative claims have super-priority over all other claims, secured and unsecured, insured and uninsured. In a major derivatives fiasco, derivative claimants could well grab all the collateral, leaving other claimants, public and private, holding the bag.

The tab for the 2008 bailout was $700 billion in taxpayer funds, and that was just to start. Another $700 billion disaster could easily wipe out all the money in the FDIC insurance fund, which has only about $25 billion in it.  Both JPMorgan and Bank of America have over $1 trillion in deposits, and total deposits covered by FDIC insurance are about $9 trillion. According to an article on Bloomberg in November 2011, Bank of America’s holding company then had almost $75 trillion in derivatives, and 71% were held in its depository arm; while J.P. Morgan had $79 trillion in derivatives, and 99% were in its depository arm. Those whole mega-sums are not actually at risk, but the cash calculated to be at risk from derivatives from all sources is at least $12 trillion; and JPM is the biggest player, with 30% of the market.

full article at source: http://webofdebt.wordpress.com/2013/04/09/winner-takes-all-the-super-priority-status-of-derivatives/#more-5620

Bankl of Ireland increase of 300% on the premium for life insurance to 640 euro per month !

Sent in to us to-day

Bank of Ireland is engaged in cherry picking in the life insurance market! Ageism is alive and well in this Irish government backed toxic and corrupt Bank. How many more Banks are engaged in this despicable practice and what can we, as consumers do about it? This of course rules me out of ever buying a property as I would not be able to afford a mortgage with these insurance costs! An increase of 300% on the premium is just outrageous!For the past 15 years I have had this term life policy with Bank of Ireland I was at the time running a business and this policy was required by the bank as collateral. I have in fact paid off all loans about 8 years ago and I decided to continue with this policy as I had no other life insurance. I am healthy and have no medical problems and I have never smoked a cigarette in my life. The life cover is about to run out next month and I received this correspondence in the post to-day.

Basically the policy is now worthless .I was told it had a value of 2300 euro about 8 months ago but when I asked to-day I was told it had a value of just 120 Euros. I am also informed if I wish to continue with the policy I will have to pay 300% more premium and that will only take me up to 2017 (5 years from now) My current premium is 219 euro per month and these gangsters are now blackmailing me into paying them 640 Euros per month .Effectively I have to take on a new, never-ending mortgage for the privilege of insuring my life. Or you could take it another “we don’t want your business “You are too old” you might die and we will have to pay out!

This is a state backed swindle and robbery, but who gives a shit??

Who can the State sue for the cost of the Quinn Insurance financial scandal?

By Namawinelake

Minister for Finance Michael Noonan may not be Father of the Dail – that’s Enda Kenny’s badge – but Michael is the most politically experienced by reference to the roles he has held over the decades. And back in 1982-1986, Michael was the justice minister during the time when the first two insurance bailouts in the State took place, that of the PMPA in 1984, and that of the Insurance Corporation of Ireland in 1985, so the present scandal unfolding in Quinn Insurance – or Quinn Direct as the public generally know it – shouldn’t be brand new ground for the veteran Minister Noonan

full article at source: https://mail.google.com/mail/?shva=1#inbox/139104f68a3fe31a

Lloyd’s withdraw its money from European banks

from Mike Larson at Money and Markets:

 

“Banks could be taken down,”says Lloyd’s finance director.

Without warning, Lloyd’s — the world’s oldest insurance market — just announced that it has withdrawn its money from European banks.The reason? According to Lloyd’s, the banks are in danger of failing as Europe’s debt crisis continues to intensify.

The company’s Finance Director, Luke Savage, put it simply:

“If you’re worried the government itself might be at risk, then you’re certainly worried the banks could be taken down with them.”

Which European governments is Lloyd’s talking about? They’re not saying.

But it IS interesting to note that Lloyd’s didn’t just withdraw its money from Greek banks; it withdrew its money from banks all over Europe!

One thing you can be sure of, though:

When the world’s oldest insurance company …

A firm that for 323 years has made its living by accurately calculating the odds of future disasters …

When that company suddenly takes its money and runs, it’s a MASSIVE red flag for investors — a clear sign that the beginning of the end is near!

source : http://jhaines6.wordpress.com/2011/09/21/lloyds-of-london-abandons-european-banks/.

Comment :

This tells me we are about to see the lows of 2009 in the financial markets.Spair a thought for the so called investors of Bank of Ireland .They are certainly getting burned  as of today the share price is currently 06.90 cent  they paid we’re told 10 cent a share  a 30% loss so far and that only one month after their investment in the toxic bankrupt bank.

Impoverishment of the Western World

By  Daily Bell

U.S. poverty totals hit a 50-year high Census Bureau’s grim statistics show recession’s lingering effects, as young adults move back home and 1 million more Americans go without health insurance … In a grim portrait of a nation in economic turmoil, the government reported that the number of people living in poverty last year surged to 46.2 million — the most in at least half a century — as 1 million more Americans went without health insurance and household incomes fell sharply.  – Los Angeles Times

Dominant Social Theme: These things happen. No reason. Depressions spontaneously occur. They are “market mistakes.”

Free-Market Analysis: We’ve spent considerable time in the past three years (the past decade, actually), analyzing how the powers-that-be have reorganized society, especially American society, in a way that relentlessly reduces prosperity. Figures released yesterday from the US Census provide a startling illustration of just how effective elites have been. (See excerpt above.)

Why would a handful of wealthy central banking families want to impoverish the US and render its citizens penniless? Our conclusion is simple: World  government is on the way and the American culture is still resistant to the kind of hyper-regulatory corporatism that is necessary to support this kind of governance.

full article at source: http://www.thedailybell.com/2927/Deliberate-Impoverishment-of-the-Western-World

Pothole action group Wicklow

Wicklow pothole action group.

Our continuing monitoring of  local roads is again been called upon as we have received a call to visit the latest pothole to arouse the wrath of the motorists in Wicklow.

This latest report comes from Breagura/Kilboy .see map http://maps.google.ie/maps?hl=en&ll=52.924765,-6.113849&spn=0.013505,0.037637&z=15

 

The junction road surface at the beehive pub on the N11  is also in an a palling condition here are
some photos took earlier today (22.06.2011)

 

 

Wicklow pothole action group 01.06.2011

Att: Wicklow County council  

To whom it may concern,

We, the Wicklow pothole action group, were informed about this pothole yesterday I went out to day to take a photo of it and as I was driving along the R761 about 350 yards after Hunters Hotel in the direction of Newcastle I came across the pothole in question .Attached are some photos and a video clip so you can get a sense of the size it is. We wish to now pass this information on to you in the hope you will take prompt action in repairing this danger to road users and prevent damage to citizen’s vehicles.

May we offer our thanks for your prompt action in the past?

Thomas Clarke

WPAG

“I’d very much appreciate you passing on my details and of course the details of my website – http://www.potholes.ie. Like you we will pursue councils the length and breadth of the country trying to raise the issues caused by potholes and pressurise them into action.”

 

Criminal Probability Theory

Tanya Khovanova

I am sitting in front of my computer and scheming, or, more precisely, scamming. I am inventing scams as a way of raising awareness of how probability theory can be used for deception.

My first scam is my lottery project. Suppose I create and run a private lottery. I will award minor payments to some participants, while promising a grand prize of one hundred million dollars. However, there will be a very small probability that anyone will win the big payout. My plan is to live lavishly on my proceeds, hoping no one ever wins the big ticket.

The beauty of this scheme is that nobody will complain until someone scores the top prize. After all, everyone has been receiving what I promised, and no one realizes my fraud. If nobody wins the big award until I retire, I will have built my life style on deception without having been caught.

Suppose someone wins the hundred million dollars. Oops. I am in big trouble. On the other hand, maybe I can avoid jail time. I could tell the winner that the money is gone and if s/he complains to the police, I will declare bankruptcy and we will all lose. Alternatively, I can suggest a settlement in exchange for silence. For example, we could share future proceeds. Probability theory will help me run this lottery with only a small chance of being exposed.

But even a small chance of failure will cause me too much stress, so I have come up with an idea for another scam. I will write some complicated mathematical formulas with which to persuade everyone that global warming will necessarily produce earthquakes in Boston in the near future. Then I’ll open an insurance company and insure everyone against earthquakes. As I really do not expect earthquakes in my lifetime, I can spend the money. I’ll just need to keep everyone scared about earthquakes. This time I can be sure that I won’t be caught as no one will have a reason to complain. The only danger is that someone will check my formulas and prove that I used mathematics to lie.

Perhaps I need a scam that covers up the lie better. Instead of inventing an impossible catastrophe, I need to insure against a real but rare event. Think Katrina. I collect the money and put aside money for payouts and pocket the rest. But I actually tweak my formulas and put aside less than I should, boosting my bank account. I will be wealthy for many years, until this event happens. I might die rich but if this catastrophe happens while I’m still alive, I’ll declare bankruptcy.

Though I was lying to everyone, I might be able to avoid jail time. I might be able to prove that it was an honest mistake. Mathematical models include some subjective parameters; besides, everyone believes that nature is unpredictable. Who would ever know that I rigged my formulas in my favor? I can claim that the theory ended up being more optimistic than reality is. Who could punish me for optimism?

Maybe I can be accused of lying if someone proves that I knew that the optimistic model doesn’t quite match the reality. But it is very difficult for the courts to punish a person for a math mistake.

When I started writing this essay, I wanted to write about the financial crisis of 2008. I ended up inventing scams. In a way, I did write about the financial crisis. My scams are simplified versions of what banks and hedge funds did to us. Will we ever see someone punished?

source:http://blog.tanyakhovanova.com/

More financial pain on the way for Irish families

FAMILIES were today facing more financial pain after private health insurer Quinn Healthcare said it will hike its prices by an average of 6pc.

Up to 500,000 customers are set to pay more from April in Quinn’s second insurance policy price rise this year.

The increases follow a hike of 7.9pc from January 1 and comes on the back of price rises by VHI and Aviva.

It has prompted fears that the price rises by the three companies will drive many subscribers to withdraw from private health insurance schemes and take their chances on the public health system.

The new hikes come on top of further pressure on family money, including income tax changes and the Universal Social Charge.

The cost for a family of two adults, two children and one student, currently at €2,058, will rise by €65 to €2,123 when the Quinn Healthcare policy is due for renewal.

The premium for a single adult on its Essential Plus plan will increase from €898 to €976.One of its packages, Company-Health Plus (no excess) will increase by up to 23pc — but a spokeswoman said this accounted for less than 2pc of its membership.

It claimed it had no choice but to increase its prices because Government increases in levies and tax relief changes were going to add an unplanned €13m to its costs this year.

Quinn Healthcare general manger Donal Clancy said it had no other option.

He cited the increased levy each health insurance company must pay the Exchequer this year, which amounted to a rise of 11pc for each adult and 20pc for a child.

The company had also been put under increased pressure by the 21pc increase imposed on the cost of private beds in public hospitals as well as changes in age related tax relief.

mlavery@herald.ie

– Michael Lavery

   Comment:

This is another example of runaway price increases, a trick more and more companies are doing copying the example of the Banks that can inflict arbitrary price increases when they feel like it on their captive customers. Get ready for more price increases, petrol, tolls, GP costs, school fees, Vat, Hospital fees, property taxes and TD pay hikes! Don’t forget new rate increases of 1% and more from our friends at Allied Irish Bank and Bank of Ireland

What is the new government going to do about this? I guess nothing!

VHI Price Hike (thepressnet.com)

Fine Gael’s empty promises of universal health care

By Eilish O’Regan

Monday February 07 2011

Fine Gael will not be able to begin introducing a system of universal health insurance — ending the current public and private divide — for another five years, it emerged yesterday.

And it will take the best part of a decade before it is fully rolled out across the population , the party’s spokesman on health Dr James Reilly said.

He was outlining the timescale for the system which aims to see an end to queue-jumping by private patients with everyone in the country insured and on an equal footing.

Under the scheme to be phased in from 2016, GP care will be free and the State will pay premiums for children, students and medical card holders.

The majority of the population would pay no more than €300 annually per person. But he could not say what the cost of the other 44pc with higher incomes would be.

“It will take two terms to implement and may take further into the second term to implement it,” he said.

A more immediate promise was to “bring down waiting lists” and build strong community services where people with long-term illnesses, like diabetes, could go to be treated.

Dr Reilly gave no targets for reducing lists but said they would be borrowing a successful scheme introduced in Northern Ireland, which would see “a special delivery unit” set up nationally comprised of doctors and managers.

“They will meet with the manager of each hospital and once targets are agreed they are immovable. They will report weekly and sometimes daily to the Minister for Health. If there is a problem with resources this will be addressed and if a consultant is not doing the job they will be dealt with.”

Consultants

He said he had not budgeted for extra hospital consultants to cut these waiting lists but believed it was possible to free up large hospitals and move routine work to smaller ones.

The party also said it would “abolish” the HSE and shed 8,000 backroom jobs over four years. Two thousand of these will go through a voluntary redundancy scheme costing €400m and the rest through natural wastage.

By 2014 he plans to dismantle the HSE, creating an interim Healthcare Commissioning Authority, which will only exist until the system of universal health insurance is in place.

Dr Reilly said this authority would purchase services from hospitals, which would no longer get a block grant annually.

Instead they would be paid per patient treated.

Dr Reilly said if Fine Gael was elected to government he would not be ordering the automatic opening of closed hospital beds, despite the high numbers of people who remain on hospital trolleys.

Fine Gael will also not be lifting the moratorium on recruitment but would aim to be more flexible in areas of the health service badly hit by staff shortages.

Asked about costings for the plan, Dr Reilly said the universal health insurance could be funded by using the existing €14bn in health spending and another €4bn currently paid in premiums to private health insurers.

Hospital consultants who are on public salaries of around €180,000 would no longer be able to top up their income with €300,000 in private fees once it was introduced. This would entail negotiating a new contract with specialists, he said.

Some €200m could be saved by the use of generic and cheaper medicines, he added. And the overtime and agency bill of €1.1bn could be cut.

“A huge amount of savings could also be made by moving people who can be treated in the community out of hospital. There are around 9,000 people attending the diabetic clinic in St James’s hospital who don’t need to be seen in a hospital,” he said.

– Eilish O’Regan

source:http://www.independent.ie/national-news/fg-admits-its-health-cover-plans-will-take-10-years-2528084.html

Comment:

Under closer scrutiny we see that the promises from Fine Gael are now not what they led us to believe! Again we have proof that promises from the established political parties are not worth the paper they are not written on!

We now see that they are just as good at pulling strokes as Fianna Fail was.

They cannot be trusted ,at this rate I will be dead before I will have the health care that I have been paying for the past 27 years .Fine Gael are protecting their buddies (the consultants) after all , so Universal health care is just an empty promise!

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