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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (24760)	8/21/1998 8:06:00 AM
From: Monty Lenard	Read Replies (1) \| Respond to of 94695

Hi Tommaso, I would not disagree with your feelings at all. There was one really big one go down in the not to distant past. I have several clients that lost their life savings that they had tied up in annuities with another insurance company. The shame is that they were elderly people and can't start over. The other shame is that they thought just because it said "annuity" that it was the same as being in a money market or CD. I guess that because it was with an insurance co. then it was insured. I will not let an insurance co hold my money. (1) It is generally a poor way to invest (2) The reason you stated earlier about them acting as if you were selling your soul to the devil by pulling the money out. Back when interest rates went to 20% I had my retirement with a HUGE VERY WELL KNOWN insurance company and wanted to move it to an S&L in Texas.(I knew the S&L's were or would be in trouble but I also knew that the Feds would end up making the taxpayers pay for their poor policy). It took me more than 90 Days to get my money from them. Only after telling them that if they couldn't afford to give it to me, as they promised, tell me that they couldn't stand the negative cash flow and I would understand, rather than lying to me. Hell what they were doing was earning the same high interest I wanted to for another 90 days while paying the the 7% I was earning from them. Since that experience and what I have seen them do to others since then has really soured me toward them. Have you thought about "minimum depositing" the policy just to keep it in force in addition to pulling your money? Monty

To: Tommaso who wrote (24760)	8/21/1998 3:32:00 PM
From: Jags	Read Replies (1) \| Respond to of 94695

I feel severe credit contraction could occur only in a market crash. A market crash could overnight wipe out peoples/institutions assets which snowballs into bankrupt financial institutions like banks etc. But if the market goes down slowly, a step at a time, there is ample time for ppl/institutions to get off with smaller losses and smaller losses does not lead to bankruptcies. Only those who do not see these signals and stick around longer may end up bankrupt. THoughts on that? I feel induvijual investors are at an advantage here. Their holdings are small and unloading or loading does not leave foot prints. But institutions are at a disadvantage since any move they make leaves huge foot prints on the market. Jags