Chubb was the only insurer that would issue me a standard policy with agreed-upon rather than book-value liability coverage for under $1,900 in the area of Long Island where the car is parked.
In a recent paper he proposes a system of financial regulation modelled on the original Chicago plan, with a few 21st-century bells and whistles.Any bank or bank-like entity, such as a money-market mutual fund, financing itself with short-term fixed-value liabilities could only invest in short-term debt issued by the Treasury or the Federal Reserve.
The rest of that dizzying £1.1tn was the total value of liability insurance - the government guaranteeing banks' security as lender of last resort.
Announcing results for the first half of 2016, Admiral said lower interest rates had increased the value of liabilities for claims and reduced its capital compared with liabilities.
If resource constraints are significant, this means that current models will persistently understate the value of liabilities.
Over the decades, rinks in Elmont, Mineola, Oyster Bay and Levittown fell victim to rising real estate values, soaring liability insurance rates and dwindling attendance.
The stockmarket slump has hurt investment returns; meanwhile, retirees keep living longer and low interest rates have pushed up the present value of liabilities.
That decline in the value of liabilities, thanks to the magic of strange accounting, produced revenues and profits for the banks.
"There is no financial enterprise in the world that is allowed to value its liabilities" the way New Jersey, and other public pension funds, measure the value of theirs, Mr. Love said.
In 1979, Franco Modigliani and Richard Cohn caused a stir by arguing that shares were much too cheap because investors had ignored the effect of inflation on the real value of liabilities such as debt, and so were undervaluing firms with large borrowings.
