3 ms·
well, the premium they're paying is less than the market rate, otherwise the market would have given it to them. Hence, if they're going to get a subsidized lo
by thorwasdfasdf 7y ago
well, the premium they're paying is less than the market rate, otherwise the market would have given it to them. Hence, if they're going to get a subsidized loan, they should have to pay into that, along with everyone else that is elligble for it
- LatteLazy 7y agoThere is no market rate for this because it can only be provided by government and because these events are basically unique. The key here should be for the insurer (government) to recover a little more than their expenses in the medium term. That's a correctly priced insurance policy. That's exactly what tarp did. It's actually very impressive that the managers of the program were able to price the policy so correctly if you think about it...