Comment by za_creature

15 hours ago

They're not profitable either, so the money has to come from somewhere, no?

> 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.

  • 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.

    • > 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...

      4 replies →

    • If much of the money comes from passive funds, presumably the other stocks in those funds will need to be sold?