Tuesday, April 07, 2009

Get Your TARP Before it is Too Late

Last one in is a rotten egg.

I moved to Florida just before the run of monster hurricanes. I had to look on as shortage of tarps caused additional hardship. People with leaking roofs couldn't get tarps, so when it rained the water just poured through the roof causing additional damage.

Now I find myself wondering if there are enough TARPs (Troubled Asset Relief Program) to go around.
The Treasury Department has decided to extend bailout funds to a number of struggling life-insurance companies.
It appears that if you own a bank holding company or a savings and loan, you are qualified for a TARP.

A number of life insurers, including Hartford Financial Services Group, Genworth Financial, and Lincoln National bought savings and loans last fall so they could call themselves banks and qualify for government funds. Some existing insurance companies like Prudential Financial and MetLife already qualify.

Soon these insurance companies will be crying "pour mouth" because they aggressively sold variable rate annuities tied to the performance of the stock market.

It won't be much longer before the supposedly good part of the business at AIG--insurance--starts to turn south and puts them in even more jeopardy.

Sooner or later, the Treasury is going to run out of TARP. Reminds me of the saying--"last one in is a rotten egg".

If the stock market returns to the lows it is going to be ugly. The big question right now is, will inflation click in soon enough to save the day?

Stay tuned.

There is a good article in the Wall Street Journal where you can read more about this topic --

U.S. to Offer Aid to Life Insurers.

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Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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