Comments on: Disaster Derivatives For Dummies http://www.GreenTaxi.com/disaster-derivatives-dummies/ A journey through Finance, the Environment, and Emerging Industries Fri, 12 Mar 2010 00:57:45 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Panama Real Estate http://www.GreenTaxi.com/disaster-derivatives-dummies/comment-page-1/#comment-9407 Panama Real Estate Sun, 17 May 2009 19:38:39 +0000 http://www.GreenTaxi.com/?p=1577#comment-9407 Insurance companies have been pooling money to protect against risk ever since Lloyds started. The fact is that they start with assumptions and then go on based upon experience. The derivatives are OK but the market has to decide how risky they really are and price them accordingly, that is to say, a lot lower. We have had the same situation in real estate here in Panama. Boom times were great but when speculators got stuck in a market turn around there was a log of pain. Insurance companies have been pooling money to protect against risk ever since Lloyds started. The fact is that they start with assumptions and then go on based upon experience. The derivatives are OK but the market has to decide how risky they really are and price them accordingly, that is to say, a lot lower.

We have had the same situation in real estate here in Panama. Boom times were great but when speculators got stuck in a market turn around there was a log of pain.

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