Manulife is Canada's largest insurer. Approximately 64 per cent of its earnings are generated in the United States and Asia. Smaller rival Sun Life faces a similar predicament with about 52 per cent of its earnings originating from the U.S., U.K. and Asia.Insurance companies used to be the most risk adverse and conservative of financial institutions. However with the shift to globalization of the marketplace in the eighties and nineties from production to FIRE (financial services, insurance, real estate,) this all changed. A renewed financial market dominated the market, as it once had prior to WWI, the result of this financial exuberance, and shift from investment in production to investment in investment instruments bailed out New York and London from their Reagan/Thatcher excesses and declines. In doing so insurance companies as well as the banks and other financial businesses exposed themselves to the dangers of the balloon and bust market. Chickens, home, roost.
For the October-December quarter, Sun Life reported earnings of $555 million or 97 cents per share. That compared with net income of $545 million or 94 cents per share for the same period in 2006. "This quarter was also marked by significant market turbulence," McKenney said.
Chief executive Donald Stewart said that volatility would likely affect the industry's outlook in the near term. Echoing those sentiments, Manulife CEO Dominic D'Alessandro suggested that "unsettled markets" would likely affect wealth businesses.
Sun Life also disclosed it has $84 million in direct exposure and $961 million in indirect exposure to monoline bond insurers. Those companies, which provide insurance against default in securitized debt, have become a source of worry because certain firms have had their credit ratings downgraded.
Chief investment officer Jim Anderson said Sun Life's direct exposure to monolines is with two insurers that are "AAA rated with a stable outlook." Its indirect exposure is to insurers with "investment grade" ratings, adding most of its exposure is in the U.K.
Just as people meet and authorize someone from among their own number to take specific action on their behalf, so commodities must meet to authorize a single commodity to confer full or partial citizenship in the world of commodities. The act of exchange is the occasion for such a meeting of commodities. The social activity of commodities on the market is to capitalist society what collective intelligence is to a socialist society. The consciousness of the bourgeois world is concentrated in the market report. It is only after the successful completion of the exchange that the individual can have any insight into the process as a whole, or any guarantee that his product has satisfied a social need, as well as the incentive to begin his production anew. The object which is thus authorized by the common action of commodities to express the value of all other commodities is – money. The authority of this particular commodity develops along with the development of the exchange of commodities.
Finance Capital, Hilferding 1910
Lenin Was Right
Petro Dollars Bail Out The CITI
Bank Smack Down
U.S. Economy Entering Twilight Zone
Lenin's State Monopoly Capitalism
40 Years Later; The Society of the Spectacle
Commodity Fetish a Definition
State Capitalism in the USSR
The Right To Be Greedy
Social Credit And Western Canadian Radicalism
It's the Labour Theory of Value, stupid
China: The Truimph of State Capitalism
Social Insecurity- The Phony Pension Crisis
taylorism,fordism, NEP, state capitalism, state monopoly capitalism, monopoly capitalism,
liberalism, state, Anarcho-Capitalism, libertarian, Von Mises,anarchism,, gold bug,, gold,, Albert J. Nock,
Bemjamin Tucker, Liberty, libertarian, anarchism, invdidualist-anarchist, Rothbard, Austrian School of Economics, mutualism,
homes, mortgages, housing, bubble, US, economy, Canada, sub-prime mortgage, Wall Street, crash, recession,
China, Greenspan, correction, capitalism, Rothbard, Keynes, Galbraith, stocks, markets, capitalism