Harry Reid sends insurance stocks into a nosedive
Bashing our financial industry has become something of a blood sport with the Democrats in Congress. Chuck Schumer (D-NY) singlehandedly put IndyMac out of business when he told people they were in danger of collapse. Every other word out of Joe Biden's mouth during last night's debate seemed to mention President Bush and "eight years of failed economic policies". Of course for most of those 8 years his party has controlled the Congress, but in his mind our financial problems are the fault of one man.

Yesterday Senate Majority Leader Harry Reid (D-NV) sent insurance stocks into a deep downward spiral when he told members of his caucus that a major insurer was on the verge of bankruptcy. Shares of all major insurers traded sharply lower as Reid's comment fueled fear among already jittery investors that their holdings were exposed to risk from the subprime mortgage mess.

Reid should know better. US insurers are heavily regulated and supervised by the various state insurance departments. New York State especially keeps a very close watch on the financial health of the insurers doing business there. In addition the rating company A.M. Best is widely respected as an independent watchdog for the insurance industry. To date they have not sounded an alarm regarding insurers' investment portfolios.

Just like Nancy Pelosi did earlier this week Harry Reid is injecting partisan politics into the subprime bailout discussions. Pelosi riled Republicans with her assertions that they were solely to blame for the crisis. She gave key Democrats cover to vote against the bailout bill so that it would surely be defeated. She then laid the blame for that defeat on the Republicans too.

First Schumer, then Pelosi, and now Reid have deliberately sabotaged a key component of our financial system. They are sowing the seeds of economic discontent because it helps their party's presidential candiate. More importantly it helps their party maintain control in Washington. As the financial institutions crash and burn around them they can lead the charge for more government intervention, oversight, and regulation. They have a convenient bogeyman in the form of an unpopular President and they are making the most of the public's dissatisfaction with him. It's easy to pin the blame for all our problems on President Bush when a compliant media is all too willing to regurgitate Democratic party press releases and call them "news".

Expanding the size and scope of government is a key component of Barack Obama and the Democratic party's agenda. It is clear now that they are willing to exacerbate the nation's financial crisis, inflict misery on millions of Americans, and possibly plunge the world into a deep recession if that is what it takes to put their man in the White House. They are playing a very dangerous game with only one objective, to win at any cost, even if in the end we all lose.

Posted at 09:32 by Chris   [/rants]   | | | Email | del.icio.us | Digg | Stumble It! | Reddit | Link