The Brothers Austrian » life insurance http://www.brothersaustrian.com An economics blog in the Austrian tradition, written by two brothers, one teacher and one bond trader Sun, 24 Apr 2011 13:49:23 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 The Ultimate Systematic Risk http://www.brothersaustrian.com/the-ultimate-systematic-risk/ http://www.brothersaustrian.com/the-ultimate-systematic-risk/#comments Wed, 08 Apr 2009 12:25:23 +0000 MisesBeliever http://www.brothersaustrian.com/?p=164 I said this months ago (U.S. to Offer Aid to Life Issurers), the government has to bailout these insurers because they are ones that own the most financial services paper. This is no different than what happened in 1929-30, everyone owned each others paper. Once the average policy holder realizes this, they may seek to redeem the cash value of the policy.  This ten causes a solvency problem for the insurers.

As a bond trader this is positive, and an Austrian…

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