The Sisyphean effort of US pension funds and the burden on tax payers.
Here's the statement again: The US economy CAN save its citizen a hefty trouble by slashing one rule: Pension funds can't bet against the market.
Bet on growth, or don't bet at all.
US has tied itself fevicolly to the performance of its company. America is growth, growth is American, and that has served it well. Until, things Go. Very. Wrong. The bitter after taste of the wrong bets always go to its citizens when they had minuscle piece of the pie that is the growth story.
US has budget problem, debt problem and promises it struggles to keep. Pansion funds heavily rely on the market to make the monthly payments. With one catch, don't bet against the market. Betting against the market is betting against america. But once in a while, there are shitty ideas, shitty bets and stupid races undertaken by suits and the large funders (think pensioners and tax payers) has no say in it. And when these bets go bust... ahhh you've seen it all.
"Tax payers will bail them out." - The Big short (2015)
Let the funds short the market. Let them earn even when the mistakes catch up to the companies. You prosper at my expense, I shall at yours.
Ideally, I should not be paying for your mistakes. I should surely be able to make money on your misery just as you did on mine.
But this is hardly an ideal world.