Creating a Bailout Army of Retail Investors

Creating a Bailout Army

Creating a Bailout Army

I’m actually OK with this one.  If the taxpayers are going to be on the hook for the losses, they should get a crack at the upside, too (hopefully there will be an upside).

And if that opportunity comes in the form of retail funds created by quality organizations like the Pimco‘s and the BlackRock‘s…so be it.

From the New York Times:
The Obama administration is encouraging several large investment companies to create the financial-crisis equivalent of war bonds: bailout funds.  These investments, akin to mutual funds that buy stocks and bonds, would give ordinary Americans a chance to profit from the bailouts that are being financed by their tax dollars.

This is cool, let everyone who is suitable and wants to back the US plan have an entry point for investment.  Because if the rescue is successful, but only the oligarchs and billionaires benefit, then you’ve added an insult to the already-injured citizens.

Just keep Merrill Lynch out of the mix.  They are the Washington Generals of financial products.

And for Crom‘s sake, no levered ETFs either…the last thing we need is an Ultra Long Toxic Assets or a 3X Sub Prime Fund.

Now will I be recommending these to retail clients?  Oh boy, that’s a whole ‘nother story!  Let’s get a look at that fine print first.

Full Story: US May Enlist Small Investors (NYT)

Read Also: Top 10 ETFs They Haven’t Created Yet

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  1. About That Public-Private Fund For Retail Investors… « The Reformed Broker commented on Jul 28

    […] OK, I had to satiate the gods of regulation.  Now that it’s just us adults, I thought I’d discuss yesterday’s news that the BlackRock Bailout Closed-End Fund is currently being vetted by the SEC.  This is the fund that is meant to be an access point for retail investors to the Public-Private Investment Program or PPIP that I first wrote about back in April (Creating a Bailout Army of Retail Investors). […]

  2. About That Public-Private Fund For Retail Investors… « The Reformed Broker commented on Jul 28

    […] OK, I had to satiate the gods of regulation.  Now that it’s just us adults, I thought I’d discuss yesterday’s news that the BlackRock Bailout Closed-End Fund is currently being vetted by the SEC.  This is the fund that is meant to be an access point for retail investors to the Public-Private Investment Program or PPIP that I first wrote about back in April (Creating a Bailout Army of Retail Investors). […]

  3. About That Public-Private Fund For Retail Investors… « The Reformed Broker commented on Jul 28

    […] OK, I had to satiate the gods of regulation.  Now that it’s just us adults, I thought I’d discuss yesterday’s news that the BlackRock Bailout Closed-End Fund is currently being vetted by the SEC.  This is the fund that is meant to be an access point for retail investors to the Public-Private Investment Program or PPIP that I first wrote about back in April (Creating a Bailout Army of Retail Investors). […]