I went out for a quick morning walk this morning and looked down at my neighbor's Washington Post. While the story is a bit buried now at washingtonpost.com, the headline above the fold on page A1: Bailout Expands To Insurers. Insurers? What is going on? Per the Post:
The Treasury Department is dramatically expanding the scope of its bailout of the financial system with a plan to take ownership stakes in the nation's insurance companies, signaling new concerns about a sector of the economy whose troubles until now have been overshadowed by the banking industry, government and industry sources said.
Why did I choose the title "Government to insure market losses of rich" instead of strictly talking about the insurers? I'll explain below.