Posted on 10/10/2007 4:10:01 AM PDT by Brilliant
Good news for readers who have dreamed of owning beachfront property in Miami: Even if you can't afford to buy the house, at least you can still pay to insure it. We're sure the current occupants will be most grateful for your generosity as they sip mojitos in South Beach.
We've been warning of the financial disaster looming off the Florida coast ever since Governor Charlie Crist socialized the state's hurricane insurance market and put Florida taxpayers on the hook for billions. Earlier this year, Mr. Crist stumped for and then signed a law making the Florida government the state's dominant insurer, but without the reserves that would be required of real insurance companies. The plan will work splendidly as long as there are no hurricanes... but the state will face a difficult challenge once the inevitable storm hits: how to pry new tax revenue out of Floridians just as they begin sifting through the rubble that used to be their homes.
Now Florida's politicians are doubling down on their mistake, by trying to make all American taxpayers subsidize insurance... Congressman Ron Klein (D., Fla.) is hoping for a floor vote this fall on his Homeowners' Defense Act and has been assured by Speaker Nancy Pelosi that this is a top priority. Governor Crist is also lobbying...
Mr. Klein's bill would force the U.S. Treasury to issue below-market loans to state-insurance programs, while also creating a kind of Fannie Mae of disaster reinsurance, a federally chartered organization called the "National Catastrophe Risk Consortium." Like Fannie, the consortium would carry an implicit guarantee from the federal government... distorting prices as it sells subsidized reinsurance to participating states, all the while saddling taxpayers with new risks. According to Treasury Assistant Secretary Phillip Swagel, "Taxpayers nationwide would subsidize insurance rates..."
(Excerpt) Read more at online.wsj.com ...
ping
Being an insuror, and being the regulator of the insurance industry, is about as big a conflict of interest possible.
Bingo!
Well this is pretty stupid -both the insurance and taxes are controlled by the FL government and they’ve made a mess of each. Until FL voters realize THEIR POLITICIANS are the problem FL housing, economy and tax receipts will continue to lag or decline. When the money gets scrarce the Corruptocrats will wander off. It will be a great opportunity for ascension of a conservative state government to cleanup their mess and implement sensible economic stewardship.
Florida still has Republican control. Maybe more RINO than not.
But if the Demorats get control because the Repbuies blow it, things won’t get better but much worse.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.