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Topic: Trapped – Investors Unable to Exit Markets (Read 238 times)

sr. member
Activity: 951
Merit: 259
I don't think is a valid every country the pension fund withdrawal and investment vary so we cannot comment before knowing it in detail in the case of our country there is age-linked asset allocation in place to avoid risk between equity, bonds, and govt bills. But people are allowed to withdraw twice for a specific reason in a certain percent of the accumulated value so those withdrawals can be limited based on the current situation.
legendary
Activity: 3080
Merit: 1500
Investors are trapped via their pension schemes in a financial system now wholly dependent upon the government printing press.  The legitimacy of the $44 trillion pension fund industry is at risk.

https://www.zerohedge.com/news/2020-04-17/trapped-investors-unable-exit-markets

Investment in equity is always subject to the market risk! However, under normal market conditions, equity is one of the assets to offer best returns. The damage done by Covid-19 was unprecedented and the world wasn't prepared. So people are trapped and they are not getting the value they had expected out of the pension fund. However, the alternate approach suggest as "Robust Finance" is also not much different than the conventional approach other than the inclusion of property and cryptocurrency.

History shows that, when there is a financial crisis, cyrptos and properties are also impacted, probably little less but impacted! Actually the entire system is designed in a way, you can't completely go out of it. Probably you can reduce the risk to some degrees, but not completely! Addition of cryptos in a portfolio is always welcome, but the volatility is indeed a pain area!
legendary
Activity: 3654
Merit: 1165
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Well, there are two options for your future, either you change the whole system just like you say so that everyone could have a better life, not just when people retire but basically all the time and that way people wouldn't worry about their kids, the teeangers, the adults and the elderly because all of them will be living at bare minimum a survivable life with food, shelter, healthcare.

Now, if we can't really do that (which so far we haven't) that means we would basically have to put money aside for our future to either insurance or government or whatever we can find (now banks have very lucrative versions as well). Long story short you HAVE TO use those things you do not like, if we wait for a revolution and that never comes all of our future years will be horrible.
legendary
Activity: 3528
Merit: 7005
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I started reading that article. I got as far as "a highly centralised socialist system", and then the alarm bells started ringing.
I didn't even start reading it, since I've learned to tune out zerohedge's articles long ago.  I don't know who writes their stuff, but some of it is just batshit insane--and you'll see members doing exactly what OP did, linking to zerohedge stuff as if it's gospel.  It ain't.

who is trapped exactly? the article doesn't even say.
I doubt anything is trapped--at least, I haven't heard about any legitimate crises happening with people's pensions in the mainstream business news. 

zerohedge is pure unadulterated garbage.
Agreed.
legendary
Activity: 2590
Merit: 3015
Welt Am Draht
That's their target audience, they don't have anything else so if they stop predicting gloom and doom they will lose even those.
I've never seen a bunch of guys so desperate to see a disaster like those, if nothing happens soon they might start sacrificing goats for the god of bankruptcy or do some kind of other really weird rituals Smiley

The comments section reminds me of a poorly made gangbang video. No matter what the story is there's a seemingly infinite supply of dimly lit seedy men working their saggy old junk in the exact same way as all the other ones. As soon as one deposits his dribble of slime he stands aside and another one wobbles into view to squeeze out an identical one.
member
Activity: 515
Merit: 12
Investors are trapped via their pension schemes in a financial system now wholly dependent upon the government printing press.  The legitimacy of the $44 trillion pension fund industry is at risk.

https://www.zerohedge.com/news/2020-04-17/trapped-investors-unable-exit-markets
Obviously there will be a serious problem with the liquidity in the market, everything is closed and money run out. Most of people dont work, shops are closed so the market is sleeping, considering the high impact on the world economy, pension will be only a sweet dream.
legendary
Activity: 2912
Merit: 6403
Blackjack.fun
Oh, again another disaster is coming and zerohedge predicted it.
Those trillions remind me of the DB collapse saga at ZH:

2014 : The Elephant In The Room: Deutsche Bank's $75 Trillion In Derivatives Is 20 Times Greater Than German GDP
2016:  Deutsche Bank Tells Investors Not To Worry About Its €46 Trillion In Derivatives
2020:
Zero Hedge: Crickets...
Deutsche Bank: 7 trillion euro derivatives exposure

There isn't a day that goes by that they're not predicting absolute ruination for everyone. They must have developed an audience that simply can't get enough of being fed stuff like that so they carry on playing up to that.

That's their target audience, they don't have anything else so if they stop predicting gloom and doom they will lose even those.
I've never seen a bunch of guys so desperate to see a disaster like those, if nothing happens soon they might start sacrificing goats for the god of bankruptcy or do some kind of other really weird rituals Smiley

hero member
Activity: 2590
Merit: 644
Investors are trapped via their pension schemes in a financial system now wholly dependent upon the government printing press.  The legitimacy of the $44 trillion pension fund industry is at risk.

https://www.zerohedge.com/news/2020-04-17/trapped-investors-unable-exit-markets
^ The financial institution that correlates with investors probably may really suffer and would have highly affected their pension scheme because of the pandemic that we are facing right now. Founds of these financial institutions probably may be used by the government to spend it in some ways that might help the country in overcoming the pandemic. For $44 trillion may not be sufficient to support the needs of the people who are affected by COVID-19. Nevertheless, investors may not be able to get what is supposedly for them right now but after this crisis surely the government will repay them back.
legendary
Activity: 3542
Merit: 1352
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This doesn't outline the actual happenings around the economy but rather instills fear to those who are actually trapped and can't make any decisions further. Zerohedge has been one of the few extreme-right journalism websites out there that always criticizes every move of the government and paint things with black even if the moves were extremely beneficial, or at least has some merits to given to it. Furthermore, I have read the whole article and found nothing about which is which. Only vague descriptions pertaining to capitalists and a shift towards a more socialist economy in the time being due to the government handing out free money to everyone.
hero member
Activity: 2128
Merit: 530
PredX - AI-Powered Prediction Market
Investors are trapped via their pension schemes in a financial system now wholly dependent upon the government printing press.  The legitimacy of the $44 trillion pension fund industry is at risk.

https://www.zerohedge.com/news/2020-04-17/trapped-investors-unable-exit-markets

I disagree wit this view, as long as Central government still has the power to print money then pension scheme is secured.  Just look at what they are doing with the economy, printing money at will. I still believe they are pushed to the wall they will start buying up equities.
sr. member
Activity: 1400
Merit: 269
i feel sad to those people who spent their lifetime paying to insurance company or pension system from Government in order to have a secured life once they get old. People should realize that the fiat system is flawed and printing money out of nothing will not do anything good to the economy and history will repeat itself and that is the great depression.
legendary
Activity: 2590
Merit: 3015
Welt Am Draht
I started reading that article. I got as far as "a highly centralised socialist system", and then the alarm bells started ringing.

The classic description is - Zerohedge, the site that predicted 200 of the last 2 recessions.

There isn't a day that goes by that they're not predicting absolute ruination for everyone. They must have developed an audience that simply can't get enough of being fed stuff like that so they carry on playing up to that.

I assume many, many more people were attracted there by one particular headline, read a few more, realised what it was and never came back.

When your agenda is that relentless and obvious you make yourself irrelevant and puerile and they're the posterboys for that.
legendary
Activity: 1652
Merit: 1483
Investors are trapped via their pension schemes in a financial system now wholly dependent upon the government printing press.  The legitimacy of the $44 trillion pension fund industry is at risk.

https://www.zerohedge.com/news/2020-04-17/trapped-investors-unable-exit-markets

who is trapped exactly? the article doesn't even say. it's just an endless screed predicting fiat collapse, with no factual information presented.

the only reference in the article is this: https://www.abc.net.au/news/2020-04-09/coronvirus-early-release-superannuation-assistance-withdrawals/12137774

....which is talking about australians being allowed to withdraw $20k from their pensions tax-free during the crisis.

zerohedge is pure unadulterated garbage.
legendary
Activity: 1904
Merit: 1277
I started reading that article. I got as far as "a highly centralised socialist system", and then the alarm bells started ringing.

https://mediabiasfactcheck.com/zero-hedge/
Quote
Overall, we rate Zero Hedge an extreme right biased conspiracy website based on the promotion of false/misleading/debunked information that routinely denigrates the left.


hero member
Activity: 3150
Merit: 937
Investors are trapped via their pension schemes in a financial system now wholly dependent upon the government printing press.  The legitimacy of the $44 trillion pension fund industry is at risk.

https://www.zerohedge.com/news/2020-04-17/trapped-investors-unable-exit-markets
This was the consequence of covid-19 and it caused most of the financial funds to freeze. in fact they don't want to send money back to investors for a reason. These pension funds work quite similar to financial investment funds, but they invest a lot safer and are usually long-term investments. and when a pandemic comes unexpectedly, it seems that their pension fund does not have enough money to pay investors back immediately. We should all understand the current economic situation and sympathize with them. I still believe retirement is still legal, just a matter of cash short-term issue.

A pension/investment fund is like a bank(the difference is that the fund doesn't lend money,it buys stocks and bonds).When all the people,who have money in the fund want to withdraw their money back,the fund doesn't have enough money to pay everyone,because it can't just sell all stocks and bonds that fast(the liquidity on the financial markets is going down,prices are going down as well).
Just like in a banking panic.
The people,who saved money in a pension/investment fund will just have to wait.
copper member
Activity: 34
Merit: 0
Bitcoin Enhanced:Bitcoin + more
Investors are trapped via their pension schemes in a financial system now wholly dependent upon the government printing press.  The legitimacy of the $44 trillion pension fund industry is at risk.

https://www.zerohedge.com/news/2020-04-17/trapped-investors-unable-exit-markets
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