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> So it seems a lack of regulation is the big problem, not economic downturn every now and then. Lack of regulation of itself. Maybe the problem is that govern
by conanbatt 7y ago
> So it seems a lack of regulation is the big problem, not economic downturn every now and then.
Lack of regulation of itself. Maybe the problem is that government shouldn't have people's retirement funds to manage.
- mkr-hn 7y agoWho should manage them?
- kome 7y agothey shouldn't invest in the market in the first place. that's what still happens in europe in most of the countries.
- apexalpha 7y agoWhat should these funds invest in then?
- yardie 7y agoAre we talking private European pensions or the public pensions? I know for a fact my private pension is in the market because they send me an annual report. State pensions is simply government recirculating money. They plug you into a formula and tell you what you'll get at age 65. For some countries it isn't whole lot.
- cpursley 7y agoA mix of whole market low fee index funds with Vanguard or the like.
- conanbatt 7y agoFreely competing organizations that cater to the citizens preferences and demands. The main reason people would choose a public administration of finances is to get the promise that if they fail, some other sucker will pay taxes to cover it.
- jodrellblank 7y agoYou mean like happened with the big private finance companies and their massive government bailout, because the private sector loves private profit and some other sucker paying for losses?
- conanbatt 7y agoWhat is private about government bailouts?
- jodrellblank 7y agoWhat? Private banks and finance companies, for-profit companies. They benefited from not-private, taxpayer-funded government bailouts.
- conanbatt 7y agoGovernment bailouts are not private actions, it's literally a public intervention, contrary to my suggestion of the government not managing people's money.
- TuringNYC 7y agoNote that even for private pensions the government is often on the hook, eg via https://www.pbgc.gov https://www.pbgc.gov They do some due diligence, but it isn’t debatable how good the asset liability management is.
- tempguy9999 7y ago> Maybe the problem is that government shouldn't have people's retirement funds to manage. True, we shoukd leave it to private industries. https://en.wikipedia.org/wiki/Robert_Maxwell#Aftermath:_Theft_of_pension_funds,_collapse_of_a_publishing_empire https://en.wikipedia.org/wiki/Robert_Maxwell#Aftermath:_Thef... I guess you're american as they seem to doubt government all the time, despite it working in other countries.
- deleted 7y ago[deleted]
- bilbo0s 7y ago>Maybe the problem is that government shouldn't have people's retirement funds to manage. All pension funds, effectively, have government as, at minimum, the backstop. No way the government would let a large private pension fund fail. (At least, I don't think they would? Maybe I'm being naive?)
- conanbatt 7y agoIf its a single fund, like Enron's pension fund, they are toast. If its a chunk big enough like the 2008 crisis, then they swoop in. Remember to bet in things that fail big time!