Michael Pollak wrote:
>
>
> IIUC, you're leaving out something that is much more severe for the
> financial institutions. Tett is assuming this would be put on top the
> current resolution regime just passed, which would fire management and
> wipe out shareholders as an immediate matter of course.
What's wrong or right with the following? What have I left out?
Doug has several times pointed out that since WW2 privvate households (i.e. the rich) have been remorselessly selling shares.
Private pension funds as well as private retirement funds often/usually have a high proportion of their funds in equity.
I didn't follow the GM bankruptcy proceedings carefully, but if equity was wiped out and bond holders were paid in part, then workers' retirement funds got wiped out and rich person's investments were partially preserved.
I assume I left out a lot, but I would appreciate clarification on this point.
Carrol