Insurance won’t matter because the insurer will be bailed out. Remember AIG? The... | Hacker News

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		chasd00 on March 15, 2023 \| parent \| context \| favorite \| on: Silicon Valley Bank unmasks the hypocrisy of liber... Insurance won’t matter because the insurer will be bailed out. Remember AIG? They sold insurance (CDS) which everyone bought then when it was time to pay out “oops bail us out please” and they were. So insurance is meaningless because who cares if the risk is priced correctly because the insurer will be bailed out themselves. The money pipe was opened then and SVB showed it will never be closed. The capture is complete.

rexreed on March 15, 2023 [–]

Clearly there needs to be some sort of reckoning when it comes to bailouts. That's a political problem for which I don't have any simple answer.

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