Posted On: July 5, 2005, 4:00 pm CDT

Posted By: Russ Vollmer

I read the varied responses to the TRIA situation and I cannot agree with those who say the federal government should bail out of the program. The Constitution charges the government with the protection and welfare of our people and what better way to accomplish this mission than with an industry-subsidized backstop as opposed to a pure federal handout? (Remember that TRIA coverage was not a "freebie".) Moreover the terrorism threat is almost like the threat of attack by a foreign nation, only more insidious. If the government bails out of TRIA it will leave an unimaginably difficult exposure for private insurers to assess and rate, not to mention the related economic damage from lenders who won't finance projects or real estate deals without it.