Another Wasteful Gubment Insurance Program Needs ANOTHER Bailout

User offline. Last seen 15 years 12 weeks ago.
Number 2
Number 2
Number 2's picture
Conspirator for: 18 years 31 weeks
Posted on: August 13, 2009 - 1:59pm

The following is discussion about the post titled:
Another Wasteful Gubment Insurance Program Needs ANOTHER Bailout
Feel free to add your own comments!

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User offline. Last seen 10 years 41 weeks ago.
Number 5150
Number 100
Conspirator for: 17 years 3 days
Posted on: August 13, 2009 - 2:03pm #1

Not only is it wasteful, but federal flood insurance was a contributing factor to the Katrina disaster.  The Feds took over the provision of flood insurance in part due to claims of "market failure."  It seems private insurance companies were reluctant to cover homes built below sea level in a bowl between the Mississippi River and Lake Ponchartrain.  (Can't imagine why).  So the Feds stepped in to "fix the problem" and ended up subsidizing the construction of homes in a place where no homes should ever have been built.  When the levees built by the Feds failed, the homes that never would have been built in the first place had market forces been allowed to operate were flooded and 1500 lives were lost.

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- Stephen M. Smith

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User offline. Last seen 6 years 48 weeks ago.
Gardner Goldsmith
Number 6
Gardner Goldsmith's picture
Conspirator for: 18 years 31 weeks
Posted on: August 14, 2009 - 10:50am #2

So right, Stephen! The human costs need to be pointed out. In so many ways, government changes incentives and risk analysis, and inspires people to be engaged in riskier behavior. In a few sentences you bring up a very important point.

G

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User offline. Last seen 13 years 19 weeks ago.
HOO-HAA
Number 553
Conspirator for: 15 years 10 weeks
Posted on: August 15, 2009 - 4:14pm #3

WOOHOO! More bailouts!

Who's doing the 'Bailout Dance' with me?

*looks around*

Guys? Anyone else... dancing?

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