ChatGPT: Social Security Is No ‘Ponzi Scheme’

'Ponzi schemes are private frauds that collapse when new investors stop joining. Social Security is managed by the U.S. government, backed by legal mandates and payroll tax revenues,' ChatGPT told me. (Art: 1980s Social Security poster.)

Cross-Fire: NAIC and Fed Economists Release Same-Day Zingers

By Kerry Pechter
On March 21, Federal Reserve economists published research warning about increases in high-risk lending by U.S. life insurers. On the same day, the National Association of Insurance Commissioners asked Congress to eliminate the Federal Insurance Office.
Book Review

‘The Bailout State’ Explains the U.S. Money Mess

By Kerry Pechter
Over the past 50 years, the U.S. government has repeatedly used its deep financial resources to protect the interests of asset holders at the expense of wage earners, University of Sydney economist Martijn Konings argues in this insightful new book.

Honorable Mention

By Editorial Staff
U.S. PRT Deals Worth $51.8 billion in 2024: LIMRA; Higher rates a ‘double-edged sword’ for life insurers: ALIRT; ‘Personal Defined Benefit Plan’ launched; The 401(k) income trend progressing like 'a baseball game': IRIC; Three well-known financial firms acquire Viridium Group; Lincoln to offer private markets funds; Protective in $9.7 billion reinsurance deal with Resolution Life; Insurer downgrades outpaced upgrades in 2024: AM Best.

COVER STORIES YOU MAY HAVE MISSED

March 2025

‘Rated Note Feeders’ Attract NAIC Attention

By Kerry Pechter
Holding a rated note (instead of an unrated private equity fund) can reduce the extra capital that life insurers need to post when buying risky, unrated private assets. Insurance regulators have taken interest in...
February 2025

A Flood of ‘Flow Reinsurance’

By Kerry Pechter
Flow reinsurance involves the ongoing, immediate transfer of risks from a life insurer to a reinsurer as soon as annuities are issued. Life/annuity companies have used flow reinsurance for at least 15 years, but...
January 2025

Nut Case: Prudential and Brighthouse’s Bets on Pistachios

By Kerry Pechter
A California pistachio grower defaulted on $1 billion in loans from Prudential, Brighthouse Life, and U.S. Bank this year. Their legal efforts to seize the collateral offer a glimpse into the potential risks of...