Ponzi

[W.J. Feathermaker III]

there is new 401k rule by Apr 2017, will basically force the fiduciary to be constantly invested in the market. The rules are being changed to basically force the sheeple to provide a constant supply of timed liquidity every year.

https://www.shrm.org/ResourcesAndTools/hr-topics/benefits/Pages/fiduciary-rule-plan-sponsors.aspx

even though it is meant to decrease conflict of interest, it basically forces the fiduciary to be constantly invested in derivatives of one form or another. The fiduciary can not keep funds in money markets for extended period of time/cash. From what a advisor has told me, they can be sued by the employees if not invested. What happens when valuation metrics are off the wall and inflation is off the wall..

most corporations want to shift liability away from themselves to the fiduciary. Self directed plans will not be allowed by the plan sponsors. The fiduciary will present all members of the plan a core 'menu' of funds.

Interesting..so maximum bagholder offloading planned by April 2017.

 

[Spectre2007]

Interesting..so maximum bagholder offloading planned by April 2017.

no its just a deadline in regards for corporations to be complaint with federal rules regarding fiduciaries conflict of interest, but indirectly it has consequences where most will not be allowed to self direct their 401k's/PSPs..

 

[W.J. Feathermaker III]

its very simplistic model, but ultimately the most solvent players(banks) can goose counter party positions to blow them out. The third party is the never ending fool theory, the market has a constant supply of entrants.

There have been some recent examples that speak to this exact scenario. Hedge Fund A has a massive loss in one concentrate position, within minutes the vulture's find HF A's other equity positions (long/short), a squeeze ensues whereby all of the other positions in HF A's portfolio move against him, essentially front running what they believe will trigger covers (sales) in the other positions. This was a public example, now imagine the behind the scenes stuff that is only privy to the desks that monitor many different funds in the exact scenario (especially into EOQ or EOY).

 

[Spectre2007]

Yep, it's all about degrees of solvency..

Trader A 100k
Bank A 1 Billion

The above two can trade any fictitious security and Bank A can maneuver price to blow out position of Trader A.