2009 March 20 | Capital Flow Watch

FNews: Bernie Sanders still going ... blah, blah, blah ... He thinks he's Jimmy Stewart. #tcot >>
FNews: Congressional porkers adding earmarks to tax cut bill. Outrage growing. Will GOP cave? #tcot >>
@StopBeck_ @FairTaxNancy Exactly which US riots has the US gov't fomented recently? I haven't heard of any. #tcot >>
FNews: Sen Sanders (Socialist-VT) is filibustering for more taxes and unemployment. Thank VT voters for this pinko whacko. #tcot >>
@haymakers @theeconomist @JoeNBC The Economist is a magazine by socialists for socialists. Take with a large grain of salt. #tcot >>

Getting ready for Obamaflation

What inflation does to the insurance industry

By John Schroy, on March 20th, 2009 |

Wild ’stimulus spending’ by the Obama administration, together the trillion dollar costs of the imminent government health programs, are likely to bring inflation at a level usually seen in developing economies.

This article discusses the impact of high inflation on the insurance industry. If inflation reaches 25% or more, life insurance and annuities will be among the first casualties. The capital market is also likely to shrink.

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Post Modern Security Analysis

How rating agencies contributed to the Crash

By John Schroy, on March 20th, 2009 |

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The Crash of 2008 revealed serious flaws in the rating agency system. The market had lost confidence in the major agencies because of the practice of selling ratings. Also, ratings had become a condition of default and agencies, to look good, rapidly downgraded issues just prior to default.

Reform of this system is not simple, requiring an entirely new approach consistent with the complexity of today’s market. Collaborative research with new Internet technology is a possible solution.

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