Mish on Insurers
Annuity And Pension Time Bomb
I still have not seen a mainstream media discussion of one of the big
problems facing life insurers: guaranteed annuities. Many insurers
offer annuities that guarantee 6% or more. Many pension plan
assumptions are 8.5% or higher. The stock market is down 41%.
If I am correct, the S&P 500 is headed for 600, well over a 60%
decline peak to trough. This is happening right as boomers are
retiring and will be tapping those guarantees. Finally, the stock
market will not come roaring back to new highs wherever it bottoms.
For more discussion why, please see Peak Earnings.
Last 5 posts by MacroMan
- Thiel: Still heading toward deflationary endgame - August 4th, 2010
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- Quotable - May 5th, 2010
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- Pimco Warns of Deflation Risk as Central Banks to Cool Stimulus - April 21st, 2010
December 26, 2008 8:08 pm No Comments
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