The holders of German Life Insurances are aspected to take a significant loss after the insurance expired because the insurances are sharing the banks risks through their attendence in the banks bonds and depentures.
The governments are still trying to protect "private investors" (whatever it cost's) who are covering large national deps by weird decisions.This "private investors" are mainly banks and insurances who lended (around 50 billion) to not so well managed EU countries and their not so well managed banks.This money is just gone.
A bancruptcy of a EU country would have deep effects in the trust towards insurances who are investing in EU Bonds of Portugal,Ireland,Greece and Spain.The Insurance cooperations will probably get badly shaken when this bomb get's off.
By the way,EU bonds are not covered by capital(because they are so incredibly safe anyway).I would put this into consideration before buying EU bonds.They are a high risk investment since EU countries had to brandish the white flag.
Therefore i definitely can't recomment to buy EU bonds nor signing a EU-Life Insurance and if you have some-get out there!
Thanks for your advertisement deep vats,
ReplyDeleteI would suggest anyway to take a close look where the cooperation is investing in just to make sure that they doesn't end up in financial difficulties in the worst case,as we've seen with many banks&Insurances allready in recent history.We can't look that closely in their books before signing possibly a decades long contract.:-)