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Government will just write a fat check and bail them out while the people of America take it on the chin. Seriously, how much more of this can people stand bef

Government will just write a fat check and bail them out while the people of America take it on the chin. Seriously, how much more of this can people stand before we just flip out and go crazy?

doctorpangloss 1y ago
FTX ended up paying back all of its customers and many of its creditors. Truth is you don’t know how any particular process is going to play out until it happens. Do you have any idea for an alternative to process?
- Bratmon 1y ago
  > Do you have any idea for an alternative to process? Any bank that asks for a federal bailout should get immediately nationalized no questions asked. If you're too big to fail, you're too big to be run by executives with golden parachutes.
- lesuorac 1y ago
  Didn't you both just describe a different process? FTX used their investments and depositor's holdings to pay customers and creditors (a very arguably discounted rate). OP describe the USG paying back customers and creditors.
  - deleted 1y ago
    [deleted]
anon291 1y ago
Of course they will. The main investors in these high-risk ventures is government defined-benefit pensions. There is no way government will let its own pensions fail. If you look at the entire market you will find that the private sector actually does not demand high returns. Instead, the government needs high returns because it has not properly funded its pension liabilities. Thus, it floods the market, and then unscrupulous financiers take the money with promise of high returns. The entire thing is messed up. For example, public employee retirement systems constitute 30-40% of all hedge fund investments. They need more than the 7% real return from the S&P. CalPERS needs a 13% return to meet its obligations. There is no investment on the market that can return 13%. Thus, CalPERS (and others) give money to these 'hedge funds' and private capital banks who promise them these money. Eventually, the banks go bust. THe government realizes that letting them fail makes their situation even more precarious and bails them out. Of course, the reason the government is incentivized to do this is because public sector unions hold disproportionate influence and will oust them if they don't get paid.
- rightbyte 1y ago
  > Of course they will. The main investors in these high-risk ventures is government defined-benefit pensions. There is no way government will let its own pensions fail. Would seem cheaper to do handouts directly to the retired?
  - anon291 1y ago
    Printing money to hand to retirees would not be popular. So instead, it's framed as a financial stabilization measure.

Government will just write a fat check and bail them out while the people of America take it on the chin. Seriously, how much more of this can people stand before we just flip out and go crazy?

doctorpangloss 1y ago

FTX ended up paying back all of its customers and many of its creditors. Truth is you don’t know how any particular process is going to play out until it happens. Do you have any idea for an alternative to process?

Bratmon 1y ago
> Do you have any idea for an alternative to process? Any bank that asks for a federal bailout should get immediately nationalized no questions asked. If you're too big to fail, you're too big to be run by executives with golden parachutes.
lesuorac 1y ago
Didn't you both just describe a different process? FTX used their investments and depositor's holdings to pay customers and creditors (a very arguably discounted rate). OP describe the USG paying back customers and creditors.
- deleted 1y ago
  [deleted]

anon291 1y ago

Of course they will. The main investors in these high-risk ventures is government defined-benefit pensions. There is no way government will let its own pensions fail. If you look at the entire market you will find that the private sector actually does not demand high returns. Instead, the government needs high returns because it has not properly funded its pension liabilities. Thus, it floods the market, and then unscrupulous financiers take the money with promise of high returns. The entire thing is messed up. For example, public employee retirement systems constitute 30-40% of all hedge fund investments. They need more than the 7% real return from the S&P. CalPERS needs a 13% return to meet its obligations. There is no investment on the market that can return 13%. Thus, CalPERS (and others) give money to these 'hedge funds' and private capital banks who promise them these money. Eventually, the banks go bust. THe government realizes that letting them fail makes their situation even more precarious and bails them out. Of course, the reason the government is incentivized to do this is because public sector unions hold disproportionate influence and will oust them if they don't get paid.

rightbyte 1y ago
> Of course they will. The main investors in these high-risk ventures is government defined-benefit pensions. There is no way government will let its own pensions fail. Would seem cheaper to do handouts directly to the retired?
- anon291 1y ago
  Printing money to hand to retirees would not be popular. So instead, it's framed as a financial stabilization measure.