Stock Market Insurance Is a Losing Proposition

Frederick Lynch obviously learned nothing from the savings and loan crisis and the moral hazard of unfunded, unlimited liability (“A Stock Panic Shut-Off Valve,” Commentary, Aug. 19). This kind of insurance would only further encourage irresponsible speculation and function as a form of corporate welfare, and insiders and big-money banks would benefit the most. No, thanks. As a taxpayer I already bailed out J.P. Morgan and Citigroup recently with the IMF loan to Brazil. And no one asked for permission or sent me a thank-you card.

The commentary reflects typical boomer narcissism: capitalist when winning, socialist when losing. If boomers want 401(k) insurance, it is already available in the form of covered calls, index puts, gold or bear-market funds. If boomers find this too expensive or complicated, I would suggest cash or CDs. No one has the right to gamble at the public’s expense, and a generation that professes so much love for their children should think twice about leaving them with an impossible-to-pay national debt.

James E. O’Brien

Redondo Beach