Perhaps it is by inference only, but why else would insurance companies need TARP love from our money-printing government unless they were staring at bankruptcy "on paper"? It is not hard to fathom how an insurance company gets into a world of trouble. These are institutions which MUST invest premiums into financial securities in order to make money. Not to mention the cutthroat competition on premiums themselves, vs expected payouts. I don't know anything about insurance companies beyond GS pointing out that PFG is amongst those to be wary. So while singling out PFG, there are probably plenty of insurance companies which are equally or better sells. Can't say it's too exciting for insurance companies to have to undergo the Obama/Geithner "stress tests" either. Most companies that recieve TARP test zero. So while plenty of pain is likely available for financial shorts in the near to medium term, over time a short of insurance and certain horribly-run financials should pay off.
$13.1 (04/09/09)
