Elizabeth Warren's Plan to Rein in Wall Street

[SixFoot]

I could see how that would be considered nihilism coming from the side not currently in power. It must be a helpless feeling with Trump’s very favorable odds of winning re-election, especially given the garbage being paraded on stage by the DNC.

I don’t see how electing or even praising a special interest shill like Warren will fix things though, but any feel good article that helps ease the anxiety the left is currently suffering from can’t be all bad since Antifa isn’t out punching old ladies today. lol

[reflechissez]

@Jezcoe

@reflechissez

@Jezcoe

The investors borrow the money and then transfer the debt onto the company that was just brought.

Now all of the risk to repay is on the company and not the investors.

The debt gets paid off by the company selling off assets or breaking pension guarantees for the employees.

The investors also can extract a fee for advising the company to do this.

And they pay a lower tax rate.

What’s not to like?

From whom?

From Wall Street.

Take for example what happened with Toy R Us.

Before private equity bought the company it had a debt of a little over $1.5 billion.

It gets bought… the debt Toys R Us now carries is $5 Billion.

Plus it owes it’s buyers fees for advice on how to offload the debt that it is saddled with.

Now this isn’t the only thing that killed Toy R Us, but it is pretty clear that there is a pattern in private equity that the profit motivator isn’t to grow the company but to pick it clean and jump ship before it crashes.

The Toys “R” Us Bankruptcy and Private Equity - The Atlantic

That’s a debt issue, regardless of how the debt got there. What makes it possible is the securitization of the loans, also called leveraged loans. They are different from junk bonds in that they don’t trade publicly, are illiquid and have few covenants. A meltdown in CLO market would be really ugly.

I think I just figured out why trump is hounding the feds to lower interest rates. Private equity firms are big lobbyists.

[Jezcoe]

I also like Warren’s plan where the private capital firms would have to hold the debt so the drive is to grow the business, not ride it into the ground for a quick buck.

[bigtwnvin]

Bad choice of words, apologies. You’re correct and I ( we) have been fortunate to have had good investment and wealth management advice by great people a lot smarter than me.

[Plasmaball]

Our treasury secretary wouldnt like this

[AmusedObserver]

@bigtwnvin

Bad choice of words, apologies. You’re correct and I ( we) have been fortunate to have had good investment and wealth management advice by great people a lot smarter than me.

Fair enough, and no problem! Yup, it’s been quite the run these past 10 years - really amazing. With the gains over the last decade in our 401k, we might be enjoying premium cat food for dinner in retirement, not that store brand stuff!

[blueapplepaste]

@bigtwnvin

Except some “low information” types do pay close attention to the markets and Wall Street; our retirement investments are s source if income.
Wot, you though Social Security is taking care of us old farts?
Any Boomer gen that rolled their IRA’s and 401k’s at retirement is making money for once.
The words “Warren”, “Wall Street” and “reign in” when used in a sentence could give investors the creeps.

Except that those Wall Street fat cats already crashed the global economy in 2007 and wiped out lots of people’s retirement.

Forcing them to take less risk and reigning them in isn’t a bad thing. I’d rather know my 401k was slow and steady versus could go off a cliff due to risky behaviors.

[gooddad409]

@blueapplepaste

@bigtwnvin

Except some “low information” types do pay close attention to the markets and Wall Street; our retirement investments are s source if income.
Wot, you though Social Security is taking care of us old farts?
Any Boomer gen that rolled their IRA’s and 401k’s at retirement is making money for once.
The words “Warren”, “Wall Street” and “reign in” when used in a sentence could give investors the creeps.

Except that those Wall Street fat cats already crashed the global economy in 2007 and wiped out lots of people’s retirement.

Forcing them to take less risk and reigning them in isn’t a bad thing. I’d rather know my 401k was slow and steady versus could go off a cliff due to risky behaviors.

Never lost a dime. Held the stock and now it is worth lots more than ever before.

I dare say most of us “old farts” did the same.

In any event we don’t need the government trying to control the stock market.

[mobulis]

@gooddad409

@blueapplepaste

@bigtwnvin

Except some “low information” types do pay close attention to the markets and Wall Street; our retirement investments are s source if income.
Wot, you though Social Security is taking care of us old farts?
Any Boomer gen that rolled their IRA’s and 401k’s at retirement is making money for once.
The words “Warren”, “Wall Street” and “reign in” when used in a sentence could give investors the creeps.

Except that those Wall Street fat cats already crashed the global economy in 2007 and wiped out lots of people’s retirement.

Forcing them to take less risk and reigning them in isn’t a bad thing. I’d rather know my 401k was slow and steady versus could go off a cliff due to risky behaviors.

Never lost a dime. Held the stock and now it is worth lots more than ever before.

I dare say most of us “old farts” did the same.

In any event we don’t need the government trying to control the stock market.

Yea we do.

[Axxowiz]

She only has a 1/1024th chance making it out of the primaries as the nominee.

[highroller]

Except that the government involvement in the stock market in 2008 was just a giant bailout to the baby boomer generation.

With their bailout, you would have been wiped out. Everyone would have.

[Jezcoe]

@highroller

Except that the government involvement in the stock market in 2008 was just a giant bailout to the baby boomer generation.

With their bailout, you would have been wiped out. Everyone would have.

True that

[highroller]

We’ll see. I think she has about a 40% chance right now myself.

[Axxowiz]

It’s possible is she is able to perform a vision quest into the spirit world to get advice from her elders. But it’s a long shot.

[gooddad409]

@mobulis

@gooddad409

@blueapplepaste

@bigtwnvin

Except some “low information” types do pay close attention to the markets and Wall Street; our retirement investments are s source if income.
Wot, you though Social Security is taking care of us old farts?
Any Boomer gen that rolled their IRA’s and 401k’s at retirement is making money for once.
The words “Warren”, “Wall Street” and “reign in” when used in a sentence could give investors the creeps.

Except that those Wall Street fat cats already crashed the global economy in 2007 and wiped out lots of people’s retirement.

Forcing them to take less risk and reigning them in isn’t a bad thing. I’d rather know my 401k was slow and steady versus could go off a cliff due to risky behaviors.

Never lost a dime. Held the stock and now it is worth lots more than ever before.

I dare say most of us “old farts” did the same.

In any event we don’t need the government trying to control the stock market.

Yea we do.

You guys want the government to control everything.

[gooddad409]

@highroller

Except that the government involvement in the stock market in 2008 was just a giant bailout to the baby boomer generation.

With their bailout, you would have been wiped out. Everyone would have.

Not true at all. Just an opinion. A few companies might have gone under but not the whole market.

I keep mine in mutual funds which track the dow not single companies.

[Jezcoe]

@gooddad409

@highroller

Except that the government involvement in the stock market in 2008 was just a giant bailout to the baby boomer generation.

With their bailout, you would have been wiped out. Everyone would have.

Not true at all. Just an opinion. A few companies might have gone under but not the whole market.

I keep mine in mutual funds which track the dow not single companies.

It would have been a global freeze of the credit markets.

It would have been apocalyptic.

Also… the Dow isn’t that broad based of a mutual fund.

It is only 30 companies.

[gooddad409]

@Jezcoe

@gooddad409

@highroller

Except that the government involvement in the stock market in 2008 was just a giant bailout to the baby boomer generation.

With their bailout, you would have been wiped out. Everyone would have.

Not true at all. Just an opinion. A few companies might have gone under but not the whole market.

I keep mine in mutual funds which track the dow not single companies.

It would have been a global freeze of the credit markets.

It would have been apocalyptic.

Also… the Dow isn’t that broad based of a mutual fund.

It is only 30 companies.

I would have expected nothing less of a claim from you based on the reading of many of your posts.

Have a nice day.

[mobulis]

@gooddad409

@mobulis

@gooddad409

@blueapplepaste

@bigtwnvin

Except some “low information” types do pay close attention to the markets and Wall Street; our retirement investments are s source if income.
Wot, you though Social Security is taking care of us old farts?
Any Boomer gen that rolled their IRA’s and 401k’s at retirement is making money for once.
The words “Warren”, “Wall Street” and “reign in” when used in a sentence could give investors the creeps.

Except that those Wall Street fat cats already crashed the global economy in 2007 and wiped out lots of people’s retirement.

Forcing them to take less risk and reigning them in isn’t a bad thing. I’d rather know my 401k was slow and steady versus could go off a cliff due to risky behaviors.

Never lost a dime. Held the stock and now it is worth lots more than ever before.

I dare say most of us “old farts” did the same.

In any event we don’t need the government trying to control the stock market.

Yea we do.

You guys want the government to control everything.

Nope.

[highroller]

If that is your opinion, they you have no idea what happened 2008. It was the end of capitalism.

MONEY MARKET ACCOUNTS, CASH ACCOUNTS, WERE WORTH 90 CENTS ON THE DOLLAR!!!

Talk to any banker, and that is the end of the world.

I didn’t want to bail out the banks and the insurance system. I wanted people to fail from their own stupidity!! But don’t tell me that you would be sitting pretty if there was no government involvement. They saved you!! Whether you wanted it or not.