ZIRP Hurts CHCH

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November 29, 2012 by richandrenee

β€Ž”What will shortly be realised in Christchurh is that the problems with insurance stem not from the earthquake but rather from the zero interest rate policy”

“how can the insurance industry survive if the price of money is zero”

“ok here’s how it works, you pay the insurance company, they invest, when your house is broken, they pay you, because they can from investing your fees at a fair rate (the price of money)”

“as long as governments maintain ZIRP the chance of a fair price on reinsurance is … zip”

-Richard Thompson

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