Twofer Tuesday Business

First up is the RollingStone’s Matt Taibbi take down of the New York Times’ Thomas Friedman, who likely has no clue how the average American citizen lives their daily lives. Friedman, likely the wealthiest journalist in the country, is an unabashed proponent of globalization that sees the world divided into two factions, those that like the trend towards the globalization of the world’s economy and those that don’t.

The problem for Friedman being the entire topic is far more complicated than simply painting the opponents of globalization as election year losers (think Bernie Sanders supporters and soon Trump’s). To understand where I’m going with this you must first read Taibbi’s piece because the price of globalization is inequality (income, political and other) along the decimation of the United States middle class. These built in inequalities drove the Brexit vote and no doubt plays a role in the thinking of both Trump and Sanders supporters, which I’m going to illustrate with a picture a reader sent me a while back:

Reader Submitted Photo of the Royal Dutch Shell Special Projects Office in New Orleans, Louisiana. Desks that were once occupied with college educated engineers have been empty for well over a year
Reader Submitted Photo of the Royal Dutch Shell Special Projects Office in New Orleans, Louisiana. Desks that were once occupied with college educated engineers have been empty for well over a year

Those that follow Slabbed’s twitter timeline have witnessed our coverage of the downsizing of the New Orleans RDS office, which I’m getting from a very well placed source. Shell has not exactly made a secret of what they are doing downsizing its New Orleans office but you can’t view what is happening now through the same lens used to examine previous oil patch bust layoffs. Here is an edited comment from Slabbed’s source on the current happenings in NOLA at RDS: Continue reading “Twofer Tuesday Business”

Jimbo the Clown strikes again, gives the CEO of the insolvent Louisiana Citizens Insurance a $50,000 pay raise

Louisiana Insurance Commish Jim “Jimbo the Clown” Donelon

This, after raising commercial rates in New Orleans 45%. Jeff Adelson has the sad tale of the latest state sponsored insurance jackassery for NOLA.

This is almost enough to make me feel grateful to have Mike Chaney here in Mississippi.  What a sad state of insurance we reside down here in Soggy Bottom.

Jimbo the Clown never got the memo that Louisiana Citizens Insurance is insolvent. A Captured Regulator Update.

Louisiana Insurance Commish Jim Donelon

A dimmer bulb has never flickered in the Louisiana DOI folks.

Donelon said he took off another 2.3 percent because it was excessive and served to build the company’s capital and reserves.

“They don’t need to be building reserves” with rates, Donelon said. He said other fees help Citizens remain solvent.

Reserves????  Didn’t you mean the almost billion dollar deficit Jimbo? A common clown may well be able to fool the big business lackey/buffoons over at the Wall Street Journal editorial board but the numbers don’t lie and convey the ugly truth about Louisiana’s corrupt, special interest ridden insurer of last resort.

sop

Blow back, blow out and a lot of hot air around state-funded insurance plans

Since state-funded insurance plans are a big money maker for the insurance industry and a deep money pit for the states, it will be interesting to see how this trouble in paradise plays out.

Louisiana Citizens Property Insurance Corp., the state’s insurer of last resort, should be abolished, the Commission on Streamlining Government said Tuesday. Our friend Jim Brown was there.

Brown called Louisiana Citizens Property Insurance “the biggest financial disaster in history. “If the old system had been in place, you and I wouldn’t be paying off a $1.5 billion bond issue” that bailed out Louisiana Citizens Property Insurance”.

What a blow back!  Meanwhile in neighboring Texas, the general manager of the the Texas Windstorm Insurance Association had a blow out: Continue reading “Blow back, blow out and a lot of hot air around state-funded insurance plans”