Its not just the little guy; its the entire economy.
Bonds are absolutely essential to economic growth. Without bonds there is little or no investment. What Obama has done is to change the status, through government, coercion, of bondholders from ultra secured to essentially unsecured.
Why would anyone want to buy bonds in the future, knowing their status can be changed at the whim of the president.
Look for money to flow out of bond funds soon. Obama's reckless action will further tank the economy.
You might add that bonds are purchased because they are secure. A bond holder becomes a secured creditor just as a lien holder is a secured creditor.
You buy stocks on a bet but you buy bonds for security.
A bond hedge manager or any trustee who gives up that security is guilty of fiduciary mismanagement because he has willingly given away money which is not his but rather belongs to his investors and will no doubt suffer penalties.
bttt
That’s what I mean! People have no clue that this will bite them in the ass. Maybe later before sooner, but eventually.
You are absolutely dead on. Moreover, many times these bonds and other once called “secured” debts were the financial instruments owned by the so-called little guy through pension funds and IRAs, etc. So, before anyone thinks too bad for the ‘hedge fund’ think again. You’re all getting ripped off.