Alabama Insurance

The federal government Bear Stearns found that, if a company with a value of $ 15 billion, was too big, doomed to failure.

So also is not the federal government determined that a State, with a value of over $ 700 billion is too big to fail?

A budget as, say, Florida?

Absolutely not much talk of a national disaster insurance from the Republican candidate volleyed the topic in both directions, while their debate in January at Florida Atlantic University. But in this state, the subject never gets far. Power is the legal framework for the insurance discuss hurricane. The first prediction, but unreliable, for this season, is out of the storm of last week.

Unfinished Business and Congress insurance catastrophe, at home, but have not yet moved into the Senate. Some senators and private insurers argue that the proposal of Representatives. Ron Klein, D-Boca Raton, and Tim Mahoney, D-Palm Beach Gardens, saving only as a budget, say, Florida, requested by the disaster too many changes in the way maliciously. Why all Americans should Florida is responsible for the mistake?

Of course, this situation allows many of their proximity to the beach. But where is the disaster Midwesterners Unlike insurance, as a holiday. Up and next to the Florida provides Bear Stearns.

Florida’s Subprime potential crisis

If hedge funds, one completed last summer, the Director General played a bridge. Bear Stearns large part borrowed to invest in Subprime mortgages went wrong. Many COMPASS subprimes fraß Wall Street, Bear Stearns was the first real sick.

Analyses used metaphors such as plague and epidemic infection to describe what might happen if the crisis mortgage Bear Stearns. Thus, the Federal Reserve, a fire in the sale and brokerage back - deniers publics - $ 30 billion in assets and precarious. The financial regulation defended the intervention as beneficial to the country.

In Florida, a disastrous hurricane of the season, it is our Subprime potential problem. It does not fall, but it would be a torpedo damage after 2004 and 2005. Would source of security for the federal police?

Businesses in Florida during 2006 was $ 713”billion, or about 50 ours Stearnses. Even in the year 2006, when the real estate bubble left a choice at the end of that State, the gross domestic product increases more rapidly than the nation. If Washington not curbing the Gulf Coast after Katrina, Washington would not want to Florida, to be submitted. The problem is that homeowners in Florida for Hurricane payers of insurance is based on the idea that Washington would not help. We überzahlend what is not also occur.

Representative. Mahoney and small want the changer. Your bill would create a system in which the federal government would help pay for the rights to catastrophic insurance with payments leads, but also by the government-backed loans. US, which qualify for the program through their own levels of the first reimbursement commentary Florida Hurricane Catastrophe Fund works with.

Concept simple, except for McCain

If such a system exists, the insurer would have been deprived of price stability on the basis of bad years, not years devastating. This would not be the coverage of Florida cheap, but rates. Taxpayers win because the money should have been refunded to the Treasury.

It is a simple concept, and worked with a wonks of the Congressional Research Service. Unfortunately, withdrawing from the notion of Republican candidate for the presidency. “I support it is not a national catastrophe insurance,’’said John McCain at the first.” That commitment is there, and it was stated that “FEMA and the National Disaster … I am still not the confidence that FEMA is able to cope with these responsibilities.”

Comment Rep. Mahoney explains, “McCain did not understand the role of FEMA” - to help clean up areas and after emergencies to provide housing for persons, houses lost. FEMA not paying copyright - private insurance. A spokesman for the National Association of Mutual Insurance Companies is also unrealistic, when he says he was deprived of reinsurance, most catastrophic losses.

In the Middle West, it has been a bad year for flooding. The Federal Constitution of the flood insurance program, including the Midwest politicians, is $ 18 billion of debts, subsidies are there on the cheap. The Midwest allows a quantity of buildings near the rivers. Hmm. Bear Stearns sun as kind of gambling. Florida is the assault proofing homes. So why is it for catastrophe insurance, floodplain, but not the hurricane zone?