Hurricane Threatens Florida and New Orleans

Of course we have all been watching the track of hurricane Isaac.  (kind of an interesting name?)

Let me remind you that the state of Florida created it's own property insurance company because they were upset that State Farm, USAA and other big carriers were increasing premiums beyond what THEY thought all the retirees in Florida could bear.

Here is the problem....the Florida legislature that created the insurance company didn't set aside any money to pay claims.  So if they have a $billion dollar claim...they don't have the money and their plan would be to sell bonds to pay the claims.

The governor of Florida, Rick Scott, declared a state of emergency ahead of the storm's expected landfall Sunday night in the Florida Keys.

The storm is expected to intensify into a 160 kilometer per hour (100 mile per hour) hurricane as it moves north into the Gulf of Mexico and towards the Alabama-Mississippi-Louisiana coastline.

Scott cancelled his appearance at Monday's Republican national convention in Tampa to concentrate on storm preparations, shortly before convention organisers announced that the first day and a half would be shelved to allow time for the storm to pass.

"This is a state that has dealt with hurricanes forever. We are a state where we know we have to get prepared for hurricanes," Scott said.

Here;  http://www.dw.de/dw/article/0,,16195011,00.html

Of course its only a matter of time til a really big hurricane does hit Florida...and who is going to want to buy a bunch of IOU's from a bankrupt state?