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in 2007-2009 home prices in the US declined by $6T, plus commercial real estate declined $2t. Insurance companies simply don't have that kind of money. AIG trie
by EVa5I7bHFq9mnYK 4y ago
in 2007-2009 home prices in the US declined by $6T, plus commercial real estate declined $2t. Insurance companies simply don't have that kind of money. AIG tried to insure only very tiny percentage of that market, and lost.
- 8note 4y agoBut then, you cash out during boom times, and go bankrupt in bad times. Not a good reason for people to buy your insurance, but some people might believe in the boom times