monty guild looks ahead to 2004, page-2

  1. 678 Posts.
    Correction could be closer than we think. If these vultures are pulling out there must be nothing left on the bones.

    Caveat Emptor

    Insurance Companies Pull ALL Insurance Coverage for Brokerage Industry Accounts!!

    CNBC late yesterday was reporting that as of December 31, 2003 ALL COMMERCIAL INSURANCE COVERAGE for the ALL INVESTOR ACCOUNTS ( including 401k's, IRA, stock accounts, money market funds etc. ) WAS BEING DROPPED!!!

    The large private insurance companies have decided that providing insurance to protect people who have their money invested through, or deposited with, the Securities Industry was just TOO RISKY for them to continue their coverage. ALL INSURANCE POLICIES protecting those accounts expire at midnight 12/31, and WILL NOT BE RENEWED.

    The only outside protection left for investors/depositors now is SPIC Insurance ( a private company which has little in the way of reserves ) which has a cap of $500,000 per investor.

    You may not think this should be of concern to you ... but if you have your retirement funds invested via the securities industry you could easily be WAY OVER the $500,000 of insurance protection ... IF the SPIC would even have enough assets to pay off a major series of claims for even that low limit ( which I personally doubt ) .

    When the entire Insurance Industry will NOT take on a risk ... you KNOW something is very risky. ( they are not offering to continue the insurance for higher premiums ... they are REFUSING to write the insurance for any amount of premiums!! )
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