It Just Keeps Getting Worse

Kevin over at his MoJo blog, points to a memo acquired by ABC News that pretty much described another part of the economy that is about to collapse:

The claim here is that a weak economy has already left strapped consumers with fewer places to obtain traditional loans, which in turn means that people are increasingly likely to cash in their life insurance policies in order to scrounge up a bit of ready cash.  That's bad enough, but if AIG were to fail -- or if there were even a rumor of failure -- everyone would start lining up to cash in their policies at once.  This would cause a panic and customers of other insurance companies would start lining up too.  Since reserves aren't big enough to pay off everyone at once, this would cause massive, cascading failures in the entire life insurance business.

You know, the more I read, the more I realize just how screwed our economy is at the moment.