Monday, November 10, 2008

Unintended Consequences (AIG Style)

In the comments section at our latest (well, 'til now) post on the AIG debacle, regular reader Brad Ford observes:
When the gummint is your reinsurer, you're pretty much bullet-proof as to claims, reserves, you name it. And talk about intimidating: how does one level the playing field when one's competitior is Uncle Sam? Not to mention, yourself: remember, it's taxpayor dollars propping up AIG, and agents are taxpayors, too.
And there's a domino effect here, as well: what if another carrier loses so much business to AIG that it goes under? Do they get bailed out, too?
As I asked before, where does it end?
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