Via Paul Krugman via Yves Smith so I’m sure you’ve read it already but if not click now click often.
James Kwak at Baseline described the practice as rare, affecting only 0.5% of the population. The faint light bulb above my head began to flicker: could that be true…that’s not rare – that is amazingly common.
It should be fairly clear that the people who do not file insurance claims do not face rescission. The insurance companies will happily deposit their checks. [snip] that top one percent, the folks responsible for more than $35,000 of costs – sometimes far, far more – well there, ladies and gentlemen, is where the money comes in.
if a bank manager went to half of his highest net worth clients and said “sorry, you misspelled your address when you opened your account, I’m confiscating your balance,” he would be lucky to get himself assigned to minimum security.