Rentabilizand death - Retail life insurance last financial innovation on Wall Street
of Economic Trends Economic Trends
Tuesday, September 8, 2009 , 11:04 Economy | Finance & Banking
Consider the mutually beneficial business . John is suffering from an incurable disease . Also, John has a life insurance policy of $ 1 million , money that will accrue after the unfortunate will be dying . What has captured John in this business? Nothing . The latest innovation on Wall Street is described in detail on the blog Economic Trends .
Well, here comes a gracious which aims to John next fair : in exchange for the right to collect the money corresponding insurance, gives a fraction before he died . In other words , John gets lifetime beneficiary of a portion of the amount due to him as a "reward " for his death.
If you live with the illusion that those who caused the current collapse withdrew quietly from the first line , you 're sadly mistaken . They never left the battlefield and I think I would not exaggerate if I say that , ultimately , the notion of " battlefield " in the current acceptance belongs altogether. There are people discreet , almost obscure , but have a destructive capacity fabulous . Their goal is to make balloons not for lard , but charging commission.
It is a new sample of inventiveness investment banks , a bubble in early stage , which may hear in the near future.
Devised scheme is as simple as it is brilliant . Perhaps you are familiar adage that "the only certainty is death ." From this axiom , smart guys of Wall Street are about to develop a new generation of weapons of mass destruction .
Strange business , but quite lucrative , if we consider that a John can lay claims to a maximum of 40 % of the sum insured . So in short invest now, waiting to die John and earning 2.5 times more than you put into the business . If unhappy dies quickly, you put a prodigious profit . A secure business , huh ?
Well, the guys on Wall Street do not get to work as amateurs . Just do not think that any shark hunt Goldman will be destroyed on the corner . The real profit comes from the schema after the principle of the toxic assets underlying mortgage .
So staged schema provides group rights in larger packages for diversification and risk mitigation ( sounds familiar? ) . After this , follow the derivation selling packages of products to achieve a satisfactory level of sophistication. If in terms of the growing mortgage market Wagering proved to be a mistake , I think it is no secret that death is a sure thing. So a strong enough argument to trash noble reisteriza world .
When I first heard of this "new concept " , I thought it's an experiment , and things are going to develop over time. But the scheme seems to be ready for a long time in laboratories.
Read the rest of this article and comment on economic trends .
P. S. The subject is treated in detail by the American press , New York Times delightedly stating : "Back to Business . Wall Street Pursues Profit in Bundles of Life Insurance" .
The mechanism is simple , explains prestigious newspaper : " As the policy owner dies quickly , the profit is higher - even if he lives longer than expected , investors could choose a small profit or could even lose money. "
HUNDREDS of shoppers flocked to Next in Scunthorpe hours before opening time this morning and braved the cold to be first in the store for Boxing Day bargains.
The Next store in Gallagher Retail Park kicked off its sale this morning (Thursday, December 26) from 6am - but eager shoppers were already patiently waiting in line.
Staff from the store gave out raffle tickets to shoppers to enable a fair system of entry, and so people couldn't save places.
No shopper was allowed in store without one of these tickets.
She said: "I joined the queue at 5.30am and I was number 280.
"There was still around 50 people behind me and the queue had looped round down the side of Toys 'R' Us.
"But I was in the shop by 6.05am and got lots of kids clothes half-price for my grandchildren. so it was worth getting up early.