Thanks, but the terms derivative bets, bonds etc don't mean very much to me, not being a financial person.
I thought pension funds were supposed to be long term investment tools weathering ups and downs in markets, where short term adverse was made up in the longer term.
Is this bankers once again screwing the system - us - as they did in 2008?
When the leverage used to purchase investments falls below a certain value, this results in a margin call, which forces the invester to close the trade (usually at a huge loss).
So, since the bond market is no longer worth diddly shit, it's value is not enough to act as collateral for other investments, hence margin calls and impending bankruptcy. That's why the BoE propped up the bond market, to allow the pension funds to start getting rid of their liabilites before the entire arse falls out of the market.
I'm not either really, and yes it probably will be like 2008+++ at some point. Maybe this time the people at the top take a haircut.
The alternative is higher tax, less spending and probably war to try and dismember Russia so we can gorge on the corpse (and find ourselves in the same situation again later but with nothing to kill).
Thanks, but the terms derivative bets, bonds etc don't mean very much to me, not being a financial person.
I thought pension funds were supposed to be long term investment tools weathering ups and downs in markets, where short term adverse was made up in the longer term.
Is this bankers once again screwing the system - us - as they did in 2008?
When the leverage used to purchase investments falls below a certain value, this results in a margin call, which forces the invester to close the trade (usually at a huge loss).
So, since the bond market is no longer worth diddly shit, it's value is not enough to act as collateral for other investments, hence margin calls and impending bankruptcy. That's why the BoE propped up the bond market, to allow the pension funds to start getting rid of their liabilites before the entire arse falls out of the market.
I think.
I'm not either really, and yes it probably will be like 2008+++ at some point. Maybe this time the people at the top take a haircut.
The alternative is higher tax, less spending and probably war to try and dismember Russia so we can gorge on the corpse (and find ourselves in the same situation again later but with nothing to kill).
Don't they prep China for later?