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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (71263)11/16/2007 2:55:47 PM
From: Incitatus  Read Replies (1) | Respond to of 116555
 
My comment: These companies collect enormous sums of money based on guarantees they cannot meet if anything serious goes wrong. In that regard the emperor indeed has no clothes. Buying insurance from these companies provides a false sense of security and is essentially a big waste of money.

Mish, okay, maybe those insurers don't have the capital to handle a systemic meltdown. But perhaps they don't need to. Do they have reinsurance policies?

en.wikipedia.org

Could Warren Buffett (General Re) be left holding the bag on the CDOs?