US pension funds are ‘toxic waste dump of risk’ – RT’s Keiser Report
New York’s working-class citizens, essential to the economy, are the most vulnerable amid the ongoing pandemic, due to poor healthcare services in the areas where they live.
Max Keiser and Stacy Herbert look at the supply chain of risk, in which risk gets dumped into pension funds and unsuspecting Main Streeters, who pay with inflation and taxes for the bad bets taken by Wall Street.
Max points to gerrymandering policies, where political subdivisions are created within a state or a region to allow for political manipulation, for the interests of the wealthy to be protected and the interests of the poor to be continuously exploited.
He gives one example of financial gerrymandering as a pension fund which is located in the poor neighborhood, “because there’s no way to protect itself from derivative risk reassignment into their pension account.”
That reward is kept by the hedge funds and is dumped into pension funds, he says, adding: “Pension funds are toxic waste dumps of risk, this is financial gerrymandering.”
Stacy adds that monetary and economic risks have been offloaded onto the ordinary person since 2000, but especially between 2008 and now. “Interventions from the Fed have taken little risk that bankers are taking themselves, on their bonuses, on their profit margins,” she says.
“They don’t want the risk… so, they are taking the risk off all the powerful onto the balance sheet and that’s the ordinary Americans’ balance sheet… who aren’t the elite.”
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