Post
Topic
Board Economics
Re: Trapped – Investors Unable to Exit Markets
by
davis196
on 17/04/2020, 06:29:19 UTC
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 the fund 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 with funds inside a pension/investment fund will just have to wait.