BANZAI7 NEWS--After the mortgage business imploded last year, Wall Street investment banks began searching for another big scam to make money. They think they may have found one. Preying on baby boomer purchasers of "whole life" insurance policies.
The bankers plan to buy “life settlements,” life insurance policies that ill and elderly people sell for a steep discount — $4,000 for a $1 million policy, say, depending on the life expectancy of the insured person. Then they plan to “securitise” these policies, in Wall Street jargon, by packaging hundreds or thousands together into new and improved "risk free" bonds.
They will then resell those "risk free" bonds to suckers, like big pension funds, who will receive the payouts when people with the insurance die, the underlying assumption being that the actual life expectancy of average Americans will, thanks to America's world class health care system, exceed the average life expectancy determined by insurance actuaries.
Wall Street plans to enlist the world's biggest corporate sucker AIG into the scheme by promoting new "black hole life" insurance policies.
Plans to securitise burial plot micro-mortgages are also under consideration.
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