Life insurance companies invest your money in the stock market - they only need to pay it back after your death which is hopefully in a while and not like tomorrow. They're involved in more risky investments and might bust regarding the AI bubble.
There's a mechanism that protects peoples savings with which they basically "insure" your savings for a little fee in case they go bankrupt. The problem is, that this fee will often be reimbursed by the state (and as such by the tax payer). So in the end, they get the gains from those investments and if they fail too much, all the risk is averted and paid for by the public.
4 Comments
Xenny@lemmy.world · 8 pts · 30d
Bailout with what money? Nvidia is gonna have to bail them out lmao
Canconda@lemmy.ca · 7 pts · 30d
Problem is money isn't real. The assets they are building are though.
elvith@feddit.org · 3 pts · 30d
tl;dr:
Life insurance companies invest your money in the stock market - they only need to pay it back after your death which is hopefully in a while and not like tomorrow. They're involved in more risky investments and might bust regarding the AI bubble.
There's a mechanism that protects peoples savings with which they basically "insure" your savings for a little fee in case they go bankrupt. The problem is, that this fee will often be reimbursed by the state (and as such by the tax payer). So in the end, they get the gains from those investments and if they fail too much, all the risk is averted and paid for by the public.
Sturgist@lemmy.ca · 1 pts · 30d
It's almost entirely Nvidia's "money" in the first place.