Tax & Financial Tips Archive
[Back to Archive]

 

Date: February 25, 2010
Subject: Who insures the insurers?

This is
G&G Associates Tax & Financial Consulting
e-Newsletter

Who insures the insurers?

Hotep G&G Readers,

The first wave of mortgage defaults occurred starting in mid-2007 with the blowup of subprime mortgages.

We’re currently in a lull, as refinance dates for alt-A mortgages will begin to spike later this year. Adjustable rate mortgages haven’t been a big issue yet thanks to absurdly low interest rates.

But More Pain is on the Way…

-------------------------------------------------
Internal Sponsorship:

How would you like to make up to $2 for every license plate you wrote down and save thousands of dollars a year in taxes? Click on this link to find out how: www.platesrus.biz.

Afterwards, give me a call and I’ll show you how to implement this strategy.
-------------------------------------------------

Nevertheless, the potential for a spike in rates and the continuing ugly unemployment picture spells further problems in the real estate market. This will bode poorly for holders of Mortgage Backed Securities (MBS).

As you may remember, banks and other originators took a bundle of subprime loans, packaged them into an MBS, and sold them at a significantly higher rating than the sum of the underlying loans—the financial equivalent of alchemy. Only instead of turning lead into gold, what they did was more like making manure resemble gold…that is, until people saw what it really was.

One should be wary of any institution holding significant amounts of MBS… most of the major institutions that packaged them sold them off to others, so don’t go looking at the big banks.

While many pension and government funds foolishly accepted the ratings at face value, so did many insurers. This means insurance companies could have ticking time bombs on their books—and could suffer the same blowup that AIG faced in 2008.

One notable company in this area is Hartford Financial (HIG).

In fact, while banks have been rushing to repay their TARP bailout funds, insurance companies have stayed off the repayment radar.

It’s time to bring in the bomb-sniffing dogs and minesweepers to find these hidden bombs in an insurance company’s investment portfolio.

-----------------------------

Become a GGIS subscriber now and you’ll be sure that I’ll make sure you stay on top of your Tax and Financial Future to make sure your BUSINESS … AT HOME is protected. Remember…most people look after their bosses business, but fail to look after their own Business At home.

Take advantage of our 2010 discount offer if you are not yet a member of the GGIS paid newsletter service and you’ll be on your way to knowing how to protect your portfolio...at least what’s left of it. I’ll keep you informed on the “REAL DEAL” in our economy so you can protect your wealth. So....Sign up today!!!

To become a member of the G&G Investment Society newsletter subscription, send an e-mail to GGIS@gngassoc.com and/or visit our website at www.gngassociates.net and we’ll get you signed up right away.

DON'T WAIT ANOTHER DAY!

- 1 year subscription - $49
- 2 year subscription - $84
- Lifetime subscription - $199
----------------------------


If you missed a past G&G article, click on the link below to visit G&G Associates archive:
http://ezinedirector.com/admin/publisher/archive/public/?fuseaction=a&e=7944575E0843077440

Until the next time!
Asante Sana (Thanks)
Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
757-251-0174 office
866-361-3872 toll free fax
www.gngassociates.net

"He that circumscribes your circumference determines the diameter of your thinking."
Ashra Kwesi

P.S. If you're not a GGIS Paid Subscriber reader yet, it's not a bad way to start the year. The recent dollar rally has actually given everyone some new opportunities to invest on the cheap. And currently, our GGIS portfolio is packed with great plays to kick-start your "anti-dollar" portfolio for 2010. Click here www.gngassociates.net for details about how to subscribe now (and get all kinds of extra bonuses and premium reports), for just $49 a year.

 

Tax & Financial Tips Archive
[Back to Archive]