The bailouts have benefited those closest to the fiat money spigots. Those in banking and in government around the world have seen their wealth rocket up thanks to loose money from the central banks. Times have been very good for the connected, and they’re buying mansions hand over fist in South Florida turning that fiat money into little pieces of coconut palm lined paradise.
Now comes a new bailout for our lucky friends who may not now have to pay market rates for insurance premiums. In Florida and many other places this is serious money, which will soon be the responsibility of the US taxpayer.
With Sen. Bill Nelson, D-Fla., expected any day now to reintroduce his proposal to have federal taxpayers backstop the risk of state catastrophe funds, it bears examining just who it is that would benefit from the cheaper property insurance rates his legislation promises.
Proponents of the legislation have floated a study suggesting it would save homeowners some $11.8 billion in premiums. Notably, ClimateWire today reported that one of the study’s authors claims a major hurricane could cost the federal cat fund as much as $138 billion, with little guarantee that those funds would ever be repaid. But taking the estimate for granted that shifting insurance risk onto taxpayers would save someone billions of dollars…just who might that someone be?