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Robin Varghese's avatar

There may also be the risk that with shrinking property values, the value of collateral on banks' balance sheets (heavily residential and commercial real estate via mortgages) also shrink, creating systemic challenges in the banking sector.

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John Hardman's avatar

Well said. Nobody pays much attention until it hits one's pocketbook. Without a cover of insurance for our poor decisions on building in flood and fire prone areas and on denial of climate change predictions, the reality of real personal loss rears its monstrous head. The exit of private insurance companies and the personal financial pain it will cause might be the two-by-four whack in the forehead we have needed for decades now to focus our collective attention. Without insurance, the mortage loan industry exits as well toppling all the other dominoes in the chain.

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