> It truly is insurance policies all the way down.
The way it has always played out in my lifetime, it is just a few levels of insurance, and then future taxpayers. See Katrina, Sandy, 2008 financial crisis, 2020 pandemic, etc.
The way you see the cost is when you go to buy anything new, the price of the item goes up because the background insurance is a little bit higher.
If the insurance is too high, businesses shut, market price goes up and economy slows down, leading the govt to print more money for stimulus which in turn devalues the previous losses, with justified inflation.
The way it has always played out in my lifetime, it is just a few levels of insurance, and then future taxpayers. See Katrina, Sandy, 2008 financial crisis, 2020 pandemic, etc.