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| ▲ | za_creature 3 hours ago | parent [-] | | They're not profitable either, so the money has to come from somewhere, no? | | |
| ▲ | JumpCrisscross 3 hours ago | parent [-] | | > the money has to come from somewhere, no? Yes. Equity investors. The ones who buy hundreds of billions to trillions of dollars of American stocks a quarter. | | |
| ▲ | za_creature 2 hours ago | parent [-] | | And 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. | | |
| ▲ | JumpCrisscross 2 hours ago | parent | next [-] | | > 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... | | |
| ▲ | za_creature an hour ago | parent [-] | | I made no mention of anyone being politically sympathetic or otherwise. A private investor is _private_ and thus not subject to a government bailout. The argument for government bailouts used to be that "grandpa would lose his pension", I merely stated the terms that would make this non-applicable. If pensions invest in the stock market, then they are de-facto acting as a bank. And last I checked, in the land of the free, you get to withdraw your 401k should you vibe with the decision to do so [please don't do this based on this post alone]. | | |
| ▲ | JumpCrisscross 25 minutes ago | parent [-] | | > A private investor is _private_ and thus not subject to a government bailout What does this mean? Who do you think benefits from a bailout? > If pensions invest in the stock market Pensions are private investors. And pensions invest in all kinds of things. Plenty are already shareholders in these companies. > last I checked, in the land of the free, you get to withdraw your 401k should you vibe with the decision to do so This is a non sequitur. Nobody disputed this. And 401(k)s are not pensions. | | |
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| ▲ | dboreham 2 hours ago | parent | prev [-] | | If much of the money comes from passive funds, presumably the other stocks in those funds will need to be sold? |
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