Forums

The NFIP ran out of money during Katrina, but a swift act of congress flooded its coffers with your tax dollars. Granted, that's a Federal program, but if the Federal Govt. was able to bail out Privately owned companies, I'm sure that they'd be more than happy to bail out (buy and control) state-run entities.

Looks like this is yet another convenient, power-snatching position that our 'big government' President may find himself in.

Here is an article from the weekly online version of Claims magazine that explains part of the NFIP situation:

 www.claimsmag.com/News/2009/9/Pages...Cover.aspx

Note that the article points out that "several years prior to these events (the hurricanes of 2004 and 2005), Congress moved monies from NFIP premium reserves (which at the time were described as excessive) to off-set FEMA operating expenses and redirect the savings to other federal government programs.”

In English, this means our lawmakers decided the NFIP had too much money and decided they wanted to use that money to fund their pork projects instead, so they took the money that should have been used to fund claims and spent it. Then an event comes along for which they need the funds they have already spent, and they see this as a failure of NFIP because they have to blame someone. Our government at work!