I hate to tell everyone this, but Hedge Funds have been bundling variable rate loans and selling them to Pension Funds… If interest rates rise… Does anyone remember the Derivatives crash that forced the government to bail out the banks??? Same. 👇 www.washingtonpost.com/documents/6f... - ThreadSky

jamesfloveiv.bsky.social • 82 days ago

I hate to tell everyone this, but Hedge Funds have been bundling variable rate loans and selling them to Pension Funds…

If interest rates rise…

Does anyone remember the Derivatives crash that forced the government to bail out the banks???

Same. 👇

https://www.washingtonpost.com/documents/6fd41ab8-7a61-4850-b0a4-c285f634ed5e.pdf?utm_campaign=wp_follow_josh_rogin&+utm_medium=email&+utm_source=newsletter

Comments

tee-tee.bsky.social•82 days ago

I am overeducatedAF and have no clue what you just said.

jamesfloveiv.bsky.social•81 days ago

Read the article. There is no paywall.

tee-tee.bsky.social•81 days ago

I didn’t realize it wasn’t a pay wall. Having read the article, I’m much clearer about the tariffs but still have no idea what your post means or how it relates. Lots of jargon in your post that isn’t explained in the article. But thanks for the article. I’m clearly not the audience for the post lol

jamesfloveiv.bsky.social•81 days ago

https://www.investmentwatchblog.com/the-root-cause-of-the-2008-financial-meltdown-derivatives/

jamesfloveiv.bsky.social•81 days ago

The Derivative crash affected banks, forcing government bailouts.

Hedge Fund managers know there is resistance to another bank bailout, but also know the government cannot allow Pension Funds to fold.

The cost would be huge. National Debt would increase, undermining the value of the dollar.

jamesfloveiv.bsky.social•81 days ago

The payments on variable rate loans rise as interest rates rise. Those loans are owed by businesses. A combination of a recession and rising interest rates will cause defaults on these loans.

Pension Funds will bear the cost of those defaults causing them to be unable to pay Pensions.

tee-tee.bsky.social•81 days ago

Thank you! Now i get it

jamesfloveiv.bsky.social•81 days ago

Welcome!

42eyes2ears.bsky.social•82 days ago

Don't say this. To try to envision this bunch managing a financial crisis like an incoming green Obama Administration makes me retch continuously and uncontrollably

yvettejr718.bsky.social•1 day ago

I don’t trust the stock market either. It’s artificially inflated.

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