• drakairos@feddit.online
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    1 day ago

    Don’t forget those private equities buying up life insurance companies that are being used for dumping grounds for bad loans that’ll be bailed out through state-based guaranty funds instead of passing through bankruptcy. In other words, these private equities are using life insurance subsidiaries to offload the risk of bad loans (mostly AI-related) to taxpayers if those life insurance companies become insolvent, which will likely happen when the AI bubble pops.

    https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7152239