Comment by za_creature
15 hours ago
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...
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].
> 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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If much of the money comes from passive funds, presumably the other stocks in those funds will need to be sold?