2008 Financial Crisis Under the Magnifying Glass

It may be almost a decade after the 2008 financial crisis shook the US economy, but economists and financial managers are still trying to snuff out the causes of this pandemic. The idea of a “housing bubble” has been used to describe the confusion and ignorance around the risks of the housing market leading up to the collapse. This concept connects many different pieces within the US housing market, from borrowers to lenders to big players on Wall Street. But it is difficult for economists to pinpoint one key cause of this crisis. So the magnifying glass has been placed Continue reading 2008 Financial Crisis Under the Magnifying Glass

Insurance for Insurance Companies

Everyone knows what companies like Geico, Allstate, StateFarm do. They provide life, health, auto, and other forms of insurance coverage for individuals like you and I. We buy insurance for protection from situations like car accidents that might cost too much to pay for ourselves. Insurance is a form of financial protection that smooths costs over a long period of time instead of having no costs for some periods followed by extremely high costs the next. Insurance companies also seek this type of financial stability, and have it in the form reinsurance. They have a massive amount of liability, but generally keep Continue reading Insurance for Insurance Companies