Comments on: Hey, Lets Look at More Financial Sector Charts! http://www.coyoteblog.com/coyote_blog/2008/10/hey-lets-look-a.html Dispatches from a Small Business Fri, 19 Mar 2010 17:53:00 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: foxmarks http://www.coyoteblog.com/coyote_blog/2008/10/hey-lets-look-a.html/comment-page-1#comment-14044 foxmarks Mon, 06 Oct 2008 23:15:19 +0000 http://coyote-blog.com/wordpress/2008/10/hey-lets-look-a.html #comment-14044 <p>All risks are insurable. The premium may vary. And the insured has a stake in verifying both the prudence and overall exposure of the insurer.</p> <p>“Market Failure” is not the same as business failure, or even widespread failure to perform on contracts. If there were a coercible allocation of resources more efficient than CDSs or earthquake insurance, how would you know? One would have to price risk without the benefit of market information. Maybe the occasional total wipe-out is the optimum allocation in the real world. It reminds people to actually pay attention to their contracts and counterparties.</p> All risks are insurable. The premium may vary. And the insured has a stake in verifying both the prudence and overall exposure of the insurer.

“Market Failure” is not the same as business failure, or even widespread failure to perform on contracts. If there were a coercible allocation of resources more efficient than CDSs or earthquake insurance, how would you know? One would have to price risk without the benefit of market information. Maybe the occasional total wipe-out is the optimum allocation in the real world. It reminds people to actually pay attention to their contracts and counterparties.

]]> By: dearieme http://www.coyoteblog.com/coyote_blog/2008/10/hey-lets-look-a.html/comment-page-1#comment-14043 dearieme Sun, 05 Oct 2008 15:51:46 +0000 http://coyote-blog.com/wordpress/2008/10/hey-lets-look-a.html #comment-14043 <p>Are all risks insurable with an insurer who will be around to pay out?</p> Are all risks insurable with an insurer who will be around to pay out?

]]> By: ErikTheRed http://www.coyoteblog.com/coyote_blog/2008/10/hey-lets-look-a.html/comment-page-1#comment-14042 ErikTheRed Sun, 05 Oct 2008 10:06:52 +0000 http://coyote-blog.com/wordpress/2008/10/hey-lets-look-a.html #comment-14042 <p>@Mesa - true, but perhaps not at a price anyone is willing to pay (yet) :-)</p> <p>I keep hearing the problem blamed on low interest rates creating ARMs that spiked people's payments. As far as I'm concerned, if people (and banks) were assuming crazy-low Fed rates forever, then they're idiots and they got what they deserved.</p> @Mesa – true, but perhaps not at a price anyone is willing to pay (yet) :-)

I keep hearing the problem blamed on low interest rates creating ARMs that spiked people’s payments. As far as I’m concerned, if people (and banks) were assuming crazy-low Fed rates forever, then they’re idiots and they got what they deserved.

]]> By: jsalvati http://www.coyoteblog.com/coyote_blog/2008/10/hey-lets-look-a.html/comment-page-1#comment-14041 jsalvati Sat, 04 Oct 2008 19:19:04 +0000 http://coyote-blog.com/wordpress/2008/10/hey-lets-look-a.html #comment-14041 <p>er, I think that actually <i>would</i> be a market failure. </p> er, I think that actually would be a market failure.

]]> By: Mesa Econoguy http://www.coyoteblog.com/coyote_blog/2008/10/hey-lets-look-a.html/comment-page-1#comment-14040 Mesa Econoguy Sat, 04 Oct 2008 17:13:04 +0000 http://coyote-blog.com/wordpress/2008/10/hey-lets-look-a.html #comment-14040 <p>All risks are insurable. All.</p> All risks are insurable. All.

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