John D. Rockefeller, the famous American philanthropist had probably captured the true essence of Capitalism when he said, “The way to make money is to buy when blood is running in the streets.”  He couldn’t have been more correct.

      Was going through the ET a couple of days back when I came across this article on “Death Bonds” which the industry quite innocuously refers to as “Life-settlement-backed security.” Whatever the name its as macabre a concept as Wall Street has ever come up with. Its estimated that approximately 90 million Americans own life insurance, but many of them find the premiums too expensive to pay. On the other hand there are others, eager to cash in early & herein lies the game. According to Wall Street, “Life Settlement” are arrangements that allow people the scope to sell off their policies to investors who are ready to pay the premium until the original holder of the policy is dead which is when the investors move in for the “kill” (collecting the payouts)!! For the investors its a perfect example of a ghoulish actuarial gamble- The quicker the death, the greater the profit reaped.

   I am sure that’s enough to make Marx & Engels turn in their graves!!

Advertisements