How much longer will this bear market go on for?

Prism

Type_45 said:

Urgent warnings ignored and regulators asleep at the wheel: Growing fears that Gordon Brown's pensions timebomb may finally be about to explode

- At the last count, Universities Superannuation Scheme (USS) had £82 billion

- One of Gordon brown's first big changes was to axe a dividends pension perk

- The cost to British pension funds was around £100 billion over the decade 

- An economist this week said it was known this would screw pension funds

But they said it would take 20 years to be noticed and 'hey presto, it happened'

https://www.dailymail.co.uk/news/article-11317867/Growing-fears-Gordon-Browns-pensions-timebomb-finally-explode.html 

Slightly political slant on it with them going on about the dividend tax change again but its a good overall story of how we got to this point of some pension funds taking too much misunderstood risk. QE seems to be the biggest main cause, along with the constant need for the pension funds to report their assets and therefore shortfalls.

theblueflash

Usual Daily Mail - grab a headline about Gordon Brown then run an article that barely mentions the tax on dividends within pension funds (a simple financial instrument)  - and tells us basically that pension funds, like the rest of financial markets have been dabbling in amazingly complex, risky,  “built on the sand” instruments - that are now in trouble that have zero to do with Broon. 

masonic

I guess they couldn't say the pension fund crisis was a global problem, so they had to find a scapegoat. Anyway, this isn't a problem that affects defined contribution schemes or SIPPs, which most of us will be using, just those run by professional asset managers who appear to have been swimming naked when the tide went out.

Type_45

masonic said:

I guess they couldn't say the pension fund crisis was a global problem, so they had to find a scapegoat. Anyway, this isn't a problem that affects defined contribution schemes or SIPPs, which most of us will be using, just those run by professional asset managers who appear to have been swimming naked when the tide went out.

This affects everybody. These huge pension funds also have equities. And bailing them out will affect all of us.

An investor who thinks they'll be unaffected by the pension funds and bond markets imploding is quite the mental gymnast. 

masonic

Type_45 said:

masonic said:

I guess they couldn't say the pension fund crisis was a global problem, so they had to find a scapegoat. Anyway, this isn't a problem that affects defined contribution schemes or SIPPs, which most of us will be using, just those run by professional asset managers who appear to have been swimming naked when the tide went out.

This affects everybody. These huge pension funds also have equities. And bailing them out will affect all of us.

An investor who thinks they'll be unaffected by the pension funds and bond markets imploding is quite the mental gymnast. 

When I say "this isn't a problem that affects defined contribution schemes or SIPPs", I'm referring to holding risky derivatives and the forced selling of assets to meet margin calls. Yes, we are certainly all impacted by the pension asset managers that have caused all of the mayhem and will feel the effects predominantly through even higher inflation.

Type_45

masonic said:

Type_45 said:

masonic said:

I guess they couldn't say the pension fund crisis was a global problem, so they had to find a scapegoat. Anyway, this isn't a problem that affects defined contribution schemes or SIPPs, which most of us will be using, just those run by professional asset managers who appear to have been swimming naked when the tide went out.

This affects everybody. These huge pension funds also have equities. And bailing them out will affect all of us.

An investor who thinks they'll be unaffected by the pension funds and bond markets imploding is quite the mental gymnast. 

When I say "this isn't a problem that affects defined contribution schemes or SIPPs", I'm referring to holding risky derivatives and the forced selling of assets to meet margin calls. Yes, we are certainly all impacted by the pension asset managers that have caused all of the mayhem and will feel the effects predominantly through even higher inflation.

And you'll also feel it through the stock market collapsing. That's coming.

The bond market is 20x the size of the stock market. There is a global credit crisis taking place. 

Type_45

theblueflash said:

Usual Daily Mail - grab a headline about Gordon Brown then run an article that barely mentions the tax on dividends within pension funds (a simple financial instrument)  - and tells us basically that pension funds, like the rest of financial markets have been dabbling in amazingly complex, risky,  “built on the sand” instruments - that are now in trouble that have zero to do with Broon. 

It's a MSM article.  They need to get clicks. It isn't aimed at the pension profession, or the financial world, or people who know what leveraging is or what derivatives are. They need an angle in the story to get your average, probably Right-leaning person to want to read it. 

A headline of "LDIs Cause liquidity crunch" isn't going to get many readers, and therefore please the advertisers who have paid to have space on the webpage.

masonic

Type_45 said:

masonic said:

Type_45 said:

masonic said:

I guess they couldn't say the pension fund crisis was a global problem, so they had to find a scapegoat. Anyway, this isn't a problem that affects defined contribution schemes or SIPPs, which most of us will be using, just those run by professional asset managers who appear to have been swimming naked when the tide went out.

This affects everybody. These huge pension funds also have equities. And bailing them out will affect all of us.

An investor who thinks they'll be unaffected by the pension funds and bond markets imploding is quite the mental gymnast. 

When I say "this isn't a problem that affects defined contribution schemes or SIPPs", I'm referring to holding risky derivatives and the forced selling of assets to meet margin calls. Yes, we are certainly all impacted by the pension asset managers that have caused all of the mayhem and will feel the effects predominantly through even higher inflation.

And you'll also feel it through the stock market collapsing. That's coming.

I'm reliably informed it will happen within the next two and a half months, and that there will be an 80% pulldown from the previous high, preceded by a melt-up.

quirkydeptless

theblueflash said:

Usual Daily Mail - grab a headline about Gordon Brown then run an article that barely mentions the tax on dividends within pension funds (a simple financial instrument)  - and tells us basically that pension funds, like the rest of financial markets have been dabbling in amazingly complex, risky,  “built on the sand” instruments - that are now in trouble that have zero to do with Broon. 

Gordon Brown, texture like sun
Lays me down, with my cash he runs
Throughout the night, no need to fight
Never a frown, with Gordon Brown...

Type_45

U.S. Treasury asks major banks if it should buy back bonds

https://www.reuters.com/markets/us/us-treasury-asks-major-banks-if-it-should-buy-back-us-government-bonds-2022-10-14/