RE: Re: Re: Re: Socialism Now

["Max Sawicky" <sawicky@xxxxxxxxxxxxxxxx>]

The insurance case is on the table now.  There is an
interesting column today in the Post by Warren Buffet;
his company sells insurance and lost a few billion last
month.

He makes what to me is a persuasive point that the
costs of some disasters exceed the total capitalization
of the industry, much less any company, so the could
not be expected to insure against them.  I don't know
how you hedge against a suitcase nuke.  At the same
time, business firms cannot function without insurance.
So a government role would seem to be called for.
To his credit, Buffet notes that any public backstop
of this type ought to be financed with a tax on
insurance premiums.

mbs

>>>>>>>>>>>>>>>>

Fred's note should open up what I consider to be a very important topic
that I have never seen fully analyzed.  I would love to see more
exchanges about the subject here. . . .