8 ms·
I don’t know if wiping out bond holders is good… aren’t some of these rolled up into fixed income investments by people who are retired or close to retirement?
by d136o 3y ago
I don’t know if wiping out bond holders is good… aren’t some of these rolled up into fixed income investments by people who are retired or close to retirement?
- CydeWeys 3y agoFlat out they shouldn't have owned these if they wanted a safe investment. US Treasuries and similar would have been a better choice.
- bhawks 3y agoShh you'll ruin the moment. Yes there is a huge appetite for fixed income products, especially when the credit quality is initially strong or at the moment when the credit is so-so but the yield is just right. These end up in your pension, your mutual fund and so on even if you don't touch the product directly.
- pkaye 3y agoWell atleast the CS workers still get their bonuses.
- koolba 3y agoGranny really shouldn’t be buying esoteric bonds. And if her adviser is pitching them to her, then he’s at fault.
- cmurf 3y agoBut won't take responsibility, and no government will hold him accountable. Granny will be shit out of luck.
- riffraff 3y ago> But won't take responsibility, and no government will hold him accountable In Europe we have regulations for this, and they are definitely held accountable, tho not very often. For example in the early '00s some Italian banks were held responsible for suggesting investment in argentine bonds as "safe" to unrefined clientele. At a minimum the Mifid questionnaire will restrict you from buying securities you do not understand, and any court will trivially be able to see if your financial advisor filled it in for you.
- Analemma_ 3y agoI really resent the implication that we have to be hesitant about wiping out investors because some of them might be retirees. It feels like capitalism using them as human shields, especially since these fixed-income products were forced on us, replacing guaranteed-benefit pensions.