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I've read about this a few time this year, do you think there will be some "tipping point" or crisis about these funds not being able to generate wealth?
by jackgolding 9y ago
I've read about this a few time this year, do you think there will be some "tipping point" or crisis about these funds not being able to generate wealth?
- tim333 9y agoProbably - interest rates rise a bit, the markets start going down rather than up, the pension funds end up needing topping up / bailing out. The economist Minsky had an interesting theory that in stable prosperous times people borrow to buy office blocks and the like until the degree of leverage makes the system unstable and it all goes wrong. Unless you have govt intervention to stop that which seems kind of absent in the west at the moment. https://en.wikipedia.org/wiki/Minsky_moment https://en.wikipedia.org/wiki/Minsky_moment
- CSMastermind 9y agoIt's already happening. Some funds have starting founding their own suite startups because they can't find enough places to put their money.