alt Hacker NewsAnd these equity-investors, do they use their own money to buy the (presumably non-voting) stocks?
Cause if that's the case, I see no reason for a government bailout should things go south. Nobody's pension would be affected by some private investor losing money on a bad investment.
But if that's not the case, then someone somewhere along the chain is acting as a bank, subject to a vibe-driven run.
Replies
dboreham • today at 2:32 AM
If much of the money comes from passive funds, presumably the other stocks in those funds will need to be sold?
> these equity-investors, do they use their own money to buy the (presumably non-voting) stocks?
Yes [1].
> Nobody's pension would be affected by some private investor losing money on a bad investment
...pensions also invest in the stock market.
> if that's not the case, then someone somewhere along the chain is acting as a bank, subject to a vibe-driven run
You're confusing deeply unrelated concepts. Whether or not someone who loses money is politically sympathetic has nothing to do with whether they're at risk of a bank run.
[1] https://www.federalreserve.gov/releases/z1/20260319/html/f22...