Quote:
Originally Posted by CCIP
You can only keep bailing unsustainable industries out for so long, IMO. Bailouts can't fix faulty business models, they can only buy time.
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Well, the banking crisis probably will cause the insurance crisis, as many insurance corps invested in the same bad loans with the banks. Basically, they put their money in the same place, so they're already calling for possible bailouts. The insurance companies aren't able to invest like banks, so they're not making mass profits.
Regulators are easing some restrictions, but it's not really helping them, just prolonging the failure.
My guess is because it involves millions of seniors now pulling mass funds off their policies that the government will spend about 500 billion to bail them out.