Quote:
Originally Posted by Adder
I'd prefer we be honest about real risks and instead subsidize and incentivize taking risks we view as societally valuable. Doing to reduces the chance that we bail out bad risk taking and increases the chance we reward good risk taking.
Of course, insurance may well be best managed by the government, at least as to health.
|
I don't like the idea of subsidizing an industry that already gets so much in the area of government largesse. If we are going to underwrite risk, then we should just have the FHA issue direct loans. Of course, if the banks aren't willing to invest in community development and infrastructure in troubled neighborhoods, then the next time they get themselves in liquidity trouble, the government should get the bank. Maybe they can find a buyer who is willing to act as a force for improvement, instead of just continuing to subsidize leeches in starched shirts.
Insurance is easy. One risk, one risk pool. Premiums can be adjusted for claims made by the insured, but none of the insurance redlining that takes place now.
