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As long as these instruments don't introduce systematic risks, why does it matter where wealthy investors are investing their private assets? I trust that they'
by radicaldreamer 16y ago
As long as these instruments don't introduce systematic risks, why does it matter where wealthy investors are investing their private assets? I trust that they'll do their due diligence before wiring their cash.
Besides, there are thousands of closed derivatives around, this just happens to be a high profile one.
- deleted 16y ago[deleted]
- rdl 16y agoAmong other reasons, the "wealthy investors" are institutions, like government pension funds. (and, due to insurance, all pensions are effectively government pensions) There are many trillions of dollars in projected shortfalls, which will either be met by raising taxes or reducing promised benefits. Plus, selfishly for HN people, a bubble bursting can cause a lot of collateral damage even to decent startups -- think of all the relatively decent companies which got screwed in the dot.com period.