Death Bonds: Wall Street's Insidious Plan To Make Billions Off Of The Death Of Americans

Wednesday, September 23, 2009 Posted by Shattered Paradigm

Wall Street has come up with new financial instruments called "life settlements" that will pay money to investors when people die. Critics are calling these new life insurance instruments "death bonds", because the quicker the insured people die, the more money the investors make. To these critics, it seems very unsavory that a catastrophic event, such as a flu pandemic that kills millions of Americans, could suddenly put billions of dollars into the pockets of investors.

Financial analysts have blamed much of the financial meltdown of the past year on the failure of the exotic financial investments that Wall Street has dreamed up over the past decade. But that isn't stopping Wall Street from coming up with even more bizarre financial instruments.

So just how would Wall Street investors make billions off of the deaths of ordinary Americans? The New York Times recently described exactly how these new financial instruments will work.....

The bankers plan to buy “life settlements,” life insurance policies that ill and elderly people sell for cash — $400,000 for a $1 million policy, say, depending on the life expectancy of the insured person. Then they plan to “securitize” these policies, in Wall Street jargon, by packaging hundreds or thousands together into bonds. They will then resell those bonds to investors, like big pension funds, who will receive the payouts when people with the insurance die.

The frightening thing is that these financial instruments give investors an incentive to see the policyholders die as quickly as possible. The New York Times described it this way.....

The earlier the policyholder dies, the bigger the return — though if people live longer than expected, investors could get poor returns or even lose money.

Do you understand what this is saying?

It can basically be boiled down to this statement:

The faster people die, the more money that the investors will make.

Do you find that disturbing at all?

These kind of financial instruments set up a very disturbing scenario. If millions of Americans were to suddenly die from the swine flu or from the bird flu or for some other reason, that could result in billions of dollars in profit for Wall Street investors.

Are you starting to get the picture?

That is why these financial instruments are being called "death bonds".

What kind of sick investors would hope for the early death of Americans so that they can make a huge profit?

Some are criticizing the timing of these new financial instruments considering the fact that public health authorities keep on declaring that we are on the edge of a major swine flu pandemic.

Would these "death bonds" give Wall Street investors the desire to see the swine flu take as many lives as possible?

The truth is that this kind of financial instrument should be made illegal. Nobody should be making huge profits off of the premature deaths of Americans.

But these days it seems as though some on Wall Street are willing to make a buck any way they can. Even if it means that people have to die prematurely in order for that to happen.


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