'Life settlements' bonds could be Wall Street's next big act - bunding life insurance policies

Source: www.marketwatch.com

SAN FRANCISCO (MarketWatch) - Wall Street is developing a product that packages life-insurance policies into investable bonds, and the plan already is generating controversy, according to a media report Sunday.

Investment banks expect to buy life insurance policies that ill and elderly people sell for cash, then package hundreds or thousands of them into bonds. Institutional and other buyers would be the primary buyers of these bonds, receiving a payout when people with the insurance die, the New York Times reported in its online edition.

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.

Read more: http://www.marketwatch.com/story/life-settlements-could-be-wall-streets-next-act-2009-09-06

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uh oh!

or GHOUL bonds...i want IN!

Wall Street plan for success...

Step 1. Cause a global economic meltdown that inflicts financial crises on individuals and families.
Step 2. Exploit those individuals and families by settling their life insurance policies for pennies on the dollar.
Step 3. PROFIT!!

This is shameful... Another plan to transfer wealth from the middle class (current and future generations) to the corporate elite.

...one which "wins" when people die early, is born.

Guess who else now will be 100% against any meaningful healthcare reform in America?

"Buy Vulture Bonds! It'll kill ya!"

A bunch of investment bankers had the good fortune to possess a goose which laid golden eggs every day. Lucky though they were, they soon began to think they were not getting rich fast enough, and, imagining the bird must be made of gold inside, they decided to kill it. Then, they thought, they could obtain the whole store of precious metal at once; however, upon cutting the goose open, they found its innards to be mere flesh and blood like those of any other goose.

NT