Once Again, Privatizing Gains While Socializing Losses – Private Wealth Advisors

Thursday, April 08, 2021

Once Again, Privatizing Gains While Socializing Losses

by Marty Mazorra CFP®, ChFC®

Founder & Co-Chief Investment Officer

Once again, in little more than a decade, the powers that be have facilitated the privatization of gains (subprime corporate debt buyers made great hay while the makin was good), and the socialization of losses (stuck the taxpayer with the garbage when the risk came home to roost).

So, think of the wife as the taxpayer, think of the husband as the Fed, think of the bottles as all of the insolvent debt that the Fed effectively removed from the hedge fund and private equity firms’ portfolios — and placed onto the taxpayer’s — and think of the cream as all of the stimulus:

Share:

Marty Mazorra CFP®, ChFC®

Founder & Co-CIO

is the author of "Making Lemonade: A Bright View on Investing, on Financial Markets and on the Economy" and "Leaving Liberty?: Essays on Politics and Free Market Thinking".

Recieve Between the Lines Posts to your Inbox

Sign up for lorem ipsum delores sin.

We care about the protection of your data. Read our Privacy Policy.

This website is a publication of Private Wealth Advisors. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Information on this website does not involve the rendering of personalized investment advice, but is limited to the dissemination of general information on products and services. A professional advisor should be consulted before implementing any of the options presented. Information on this website is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Hyperlinks on this website are provided as a convenience and we disclaim any responsibility for information, services or products found on websites linked hereto. Private Wealth Advisors is registered as an investment adviser with the SEC, and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.