Jeff Walton: "Is an insurance company a Ponzi scheme?"
Coffeezilla: "No. They have business activities that are providing cash flow. They're taking on risk."
Walton: "Insurance companies have capital and they're taking on risk to pay liability into the future. Almost 100% of the claims that get paid out on insurance company balance sheets is from premiums that they're collecting in the door. So under your definition, you would call an insurance company a Ponzi scheme."
Coffeezilla: "No, no. They have real profits. They have real cash flows."
Walton: "The profits are the assets that are protected on their balance sheet."
Coffeezilla: "People are paying for products."
Walton: "What's the product?"
Coffeezilla: "No. They have business activities that are providing cash flow. They're taking on risk."
Walton: "Insurance companies have capital and they're taking on risk to pay liability into the future. Almost 100% of the claims that get paid out on insurance company balance sheets is from premiums that they're collecting in the door. So under your definition, you would call an insurance company a Ponzi scheme."
Coffeezilla: "No, no. They have real profits. They have real cash flows."
Walton: "The profits are the assets that are protected on their balance sheet."
Coffeezilla: "People are paying for products."
Walton: "What's the product?"
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