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Disagree. If you think somebody (in this case the government) is mispricing something, it's not hypocritical to say "this is mispriced" and still take advantag
by jdeibele 10y ago
Disagree. If you think somebody (in this case the government) is mispricing something, it's not hypocritical to say "this is mispriced" and still take advantage of it.
Is it objectively mispriced? Probably. But we would have to have access to all of the premium received and payouts made by FEMA. https://www.fema.gov/use-flood-insurance-study-data-available-data https://www.fema.gov/use-flood-insurance-study-data-availabl...
- sjg007 10y agoOf course it is mispriced... Large scale cataclysmic damage is just too expensive to insure, just as war is or an act of God is and that is why the government is the insurer of last resort. Ultimately, it will all come out of taxes. The government will bail people out, maybe not at full market value individually but definitely at the bank level. It will be the same dynamic as the 2008 housing crash.