The Hot File

Wall Street is back at it again.  They’re bundling, that word turned dirty from the recent sub-prime mortgage fiasco.  It may be even dirtier than liberal.  Yes, as the front page of the New York Times today warns Wall Street is packaging hundreds or thousands of life insurance policies to resell as bonds, allowing investors to cash in when people with life insurance die.  Aside from the rather callous act of betting on when Grandma is going to croak, aka Wall Street’s version of a death panel, what’s alarming is that the financial world has basically pitted itself against the core, progressive policy proposals of the Obama administration, or any Democratic administration for that matter.  Here’s what I mean, if there’s a ton of money to be made by people dying, then there’s obviously less incentive to take care of others through programs such as universal healthcare, schools, even the police.  So, in light of Obama number one policy proposal, healthcare, how will Wall Street react?  My guess is that those trying to cash in on these “life settlement” packages will be overwhelmingly Republican. Most Democrats, it’s safe to assume, will be willing to bet that more people will live longer under Obama’s healthcare plan, diminishing returns for those investing in life insurance bundles. Republicans, viciously skeptical of Obama’s plan and its death panels ready to call it quits for Grandma, will most likely try cashing in.  Interestingly, the winners and losers trading on these financial products will fall along party lines.  But don’t worry about those conservatives betting against healthcare reform’s success…if they go broke, at least they’ll have free healthcare.