this post was submitted on 03 Aug 2026
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Work Reform

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[–] drakairos@feddit.online 5 points 16 hours ago* (last edited 16 hours 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