In 2002, at a time when insurance providers were unwilling to provide coverage for losses resulting from acts of terrorism, and when construction and utility companies were stalling in their development projects, Congress passed the Terrorism Risk Insurance Act (TRIA). They decided to socialize some of the financial risk, giving a federal government guarantee on insurance payouts exceeding 100 million dollars.
Over the next 12 years, Presidents Bush and Obama and six different Congresses made countless decisions to increase the risk of terrorism (and of a bailout under TRIA). Of course, the most brutally profound effects of those decisions were imposed on children, women, and men in other parts of the world. Likely the least affected people were the ones complaining in the business sections of major papers last month.
They are worried because TRIA expired January 1. An unexpected fluke on the last day of the last congressional session is to blame. “Everybody expected this would get done,” fumed Manhattan developer Douglas Durst, to New York Times reporter Jonathan Weisman.
He won’t be waiting all that long — House Speaker John Boehner promised the Baltimore Sun to “act very quickly” to renew TRIA when Congress reconvenes.