Thursday, January 1, 2009

Insurance for fire, flood -- why not recession?

Tue Dec 30, 2008 6:42am EST

By Emily Kaiser - Analysis

WASHINGTON (Reuters) - Mortgage lenders often require homeowners in flood-prone areas to carry special insurance. Should banks make companies buy recession insurance from governments before they can borrow?

That is one idea proposed by the International Monetary Fund on Monday as a way to help situations like the current one where economic uncertainty is so high that companies and consumers put off spending, deepening the downturn.

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