The Soapbox

Joined: 10/24/2017 Posts: 1693
Likes: 2864

1000+ Posts

Board Member 5+ Years

2000 Likes

500 Likes

250 Likes

100 Likes

What's this?

I should have said left holding part of the bag. I never said the equity

Holders don’t lose in the bad deals. But of course the nature of equity is they have uncapped returns on the good deals. And the taxpayers and bond holders Absorb some of the losses on bad deals without participating in the upside. Some of these bonds I’m sure are ultimately owned by pension funds and the like, who are backstopped by the Govt. Given the way the system currently works, It’s a reasonable question whether some of this leverage Is overdone when viewed from the perspective of what’s good for society.

(In response to this post by BocaHoo91)

Posted: 07/03/2020 at 12:23PM

+0

PREV NEXT REPLY

Insert a Link

Enter the title of the link here:

Enter the full web address of the link here -- include the "http://" part:

Current Thread:

Interesting perspective on Fed policy from an investment fund quarterly -- RickPerry 07/03/2020 10:30AM

This is what scares me most. Wall Street, Menlo Park and ... -- Blah 07/03/2020 11:54AM

I agree with a lot of this. And I think unemployment will be stickier -- RickPerry 07/03/2020 1:17PM

It's a sticky situation. There will also be inflationary pressures ... -- Blah 07/03/2020 1:38PM

I read something similar today in the fake New York Times re what the -- Seattle .Hoo 07/03/2020 10:55AM

Yes, it's a serious concern. Also, PE fund people have been known to -- RickPerry 07/03/2020 11:13AM

Meh...I’m not sure how “serious” the concern should be... -- Moneyshot 07/03/2020 1:06PM

Can you explain how debt holders, and -- BocaHoo91 07/03/2020 11:41AM

It's hard to answer generically. -- RickPerry 07/03/2020 11:49AM

Sure. But how is that more than what the -- BocaHoo91 07/03/2020 12:10PM

I should have said left holding part of the bag. I never said the equity -- RickPerry 07/03/2020 12:23PM

How is any of that different than how it works -- BocaHoo91 07/03/2020 12:32PM

I think there are a few differences -- RickPerry 07/03/2020 12:43PM

I think the partners’ disproportionate -- BocaHoo91 07/03/2020 12:55PM

That is part of my argument below -- RickPerry 07/03/2020 1:05PM

Right, but regulated banks own a much smaller piece of that systemic risk -- Moneyshot 07/03/2020 1:17PM

Yeah. I’m just not sure -- BocaHoo91 07/03/2020 1:10PM

I agree it's less than for banks, but am not sure I agree it's not a -- RickPerry 07/03/2020 1:29PM

Yes. It becomes a problem when the govt -- BocaHoo91 07/03/2020 1:58PM

The problem is that resolve holds until there’s a crisis and then the govt -- RickPerry 07/03/2020 2:14PM

Also, most risky debt has convertible clauses ( to equity positions, and -- Hoogle.com 07/03/2020 12:02PM

Of course. I’m just trying to -- BocaHoo91 07/03/2020 12:15PM

Unfortunately, all this stuff is too difficult to explain to Average Joe -- GoochlandHoo 07/03/2020 11:35AM

Sounds like he missed the rally ** -- hoodeyo 07/03/2020 10:51AM

Notice: Trying to get property 'queue' of non-object in /data/www/sportswar.com/wp-includes/script-loader.php on line 2781

Warning: Invalid argument supplied for foreach() in /data/www/sportswar.com/wp-includes/script-loader.php on line 2781