Stephen H Baum Leadership

Got any idea of how we got into the financial crisis we are in? Understand that extreme leverage (too much debt compared with equity to back it up) is a key contributor to the economic disaster? Remember how much “insurance” was written by AIG without capital reserves?

Then you will be pleased that the association of insurance commissioners has voted down proposals to let insurance companies maintain smaller reserves and capital bases to pay off the claims. One ray of light in an otherwise astonishing set of supposed remedies to the crisis.

That’s my view. What’s yours?