‘Life settlements’ could be Wall Street’s next act
And, when the government intervenes into healthcare and rations care, the Goldman Sachs index becomes more predictable; the shorter the holding period, the more profitable the instrument becomes because cash appears and premium costs cease.
These people at Goldman Sachs and in our government have drained the equity from the real-estate markets, and now they’re trying to suck the profits from the legal reserve system, as their federal reserve system is bankrupt and on life support itself.
They are probably truly evil. See http://www.goldmansachs666.com/ for Mike Morgan’s take on Goldman Sachs and their cohort.
With $26 trillion of life insurance policies in force in the U.S., the market for these "life settlements" bonds could be immense, the Times said.
Investment banks stand to profit from the creation, sale and trading of the bonds.
Wall Street has been searching for a product to replace the once-lucrative mortgage business, and life settlements policies are being seen as the answer, the Times said.
The article cited industry predictions that the market for the bonds could reach $500 billion. It noted that Credit Suisse Group (CS 49.97, +1.11, +2.27%) , for example, bought a firm that originates life settlements and has dedicated efforts to structuring deals and selling the bonds.
In addition, Goldman Sachs Group Inc. (GS 162.97, +1.31, +0.81%) has developed a tradable index of life settlements, allowing investors to bet on whether people will live longer than expected or die sooner than planned, the Times said, adding that spokesmen for Credit Suisse and Goldman Sachs declined to comment.
The report said that investment banks are following the model used with the packaging of subprime mortgages, which were supposed to be high-quality and less risky, but proved otherwise.
‘Life settlements’ could be Wall Street’s next act – MarketWatch