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

Full Disclosure:  My commentary here is not an endorsement of any particular fund family or investment methodology.  Please visit my terms & conditions page for a full disclaimer.

Mutual Fund Disclaimer:

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance. may not be repeated.

Tags: , , , , , , , , , ,

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Digital Transformation Solutions commented on Feb 05

    … [Trackback]

    […] There you can find 72248 additional Info to that Topic: […]