The £53 million quid heist - economy question
Discussion
Sorry this question is probably obvious to most here -
So 53 mil was stolen. Thats a fair amount of dosh. So assuming its insured and will get essentailly "replaced" - does that mean that they have to write off £53 mil elsewhere or does the economy become somehow £53 million richer in some respects?
Sorry if that doesnt make much sense - I am finding it quite hard to write what I actually mean (possibly due to vodka intake this evening
)
So 53 mil was stolen. Thats a fair amount of dosh. So assuming its insured and will get essentailly "replaced" - does that mean that they have to write off £53 mil elsewhere or does the economy become somehow £53 million richer in some respects?
Sorry if that doesnt make much sense - I am finding it quite hard to write what I actually mean (possibly due to vodka intake this evening
)
lightstepper said:Nah, its just the redistribution of wealth, comerade.....
So assuming its insured and will get essentailly "replaced" - does that mean that they have to write off £53 mil elsewhere or does the economy become somehow £53 million richer in some respects?
More spends for the villains and less for the insurance company, its underwriters, shareholders and employees.
they lose 53m hat is probably insured. they will pay the first, lets say say 10m, which comes out reserves and is effectively a loss. The insurance company will have recieved a premium which it has invested and earned a return on. In addition the insurance company will have a reserve on its balance sheet that it felt prudent to allow for any future claims relating to this policy.
If the amount paid equals the reserve, no biggy - if its in excess of the reserve, it has to pay extra, and is essentially a loss. Most insurance companies actually run on a loss i.e. they pay out all their premiums they receive in claims. They make their money by investing the premium in the meantime.
If the amount paid equals the reserve, no biggy - if its in excess of the reserve, it has to pay extra, and is essentially a loss. Most insurance companies actually run on a loss i.e. they pay out all their premiums they receive in claims. They make their money by investing the premium in the meantime.
Bit like the national lottery really.
We the public each cough up a little bit in the form of higher prices to pay the higher premiums charged by the insurance industry as the loss would have been spread across the market. The villans get the lump sum but also have to pay a bit more like everyone else.
Ice pack please!
We the public each cough up a little bit in the form of higher prices to pay the higher premiums charged by the insurance industry as the loss would have been spread across the market. The villans get the lump sum but also have to pay a bit more like everyone else.
Ice pack please!
m1spw said:
I would imagine that they'll just print a bit more money
Oh, and its not that much when our GDP is £1.1 trillion!
And the govt spent about £20-25 million on interest payments on their debts and loans etc last year alone...
>> Edited by m1spw on Tuesday 28th February 21:19
Not certain on those figures interest must be more than £20-25m per year
Net debt was £442.7 billion at the end of January, compared with £406.8 billion a year earlier. The Pre-Budget Report 2005 forecast net debt at the end of March 2006 is £456.6 billion.
Source: Office for National Statistics
Even at 4% interest that would work out at around the £30bn mark.
mcflurry said:
And the govt spent about £20-25 million on interest payments on their debts and loans etc last year alone...
Are those the labour party's "seasonally adjusted" figures???
Don't know, my economics teacher were showing us the figures this afternoon - that was the expected level for 2005-2006, and the proper figures for this year will be released in a few months time.
And it will be higher in fact, as due to the lower than expected growth last year the Govt didn't get as much in tax as they expected and so they will have had to borrow more
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