patrick.net

Wealth management accounts at the TBTF's would have been wiped out under bankruptcy. It ain't the poor folks or even the middle class who would have lost money.

Bellingham Bill says

gsr says

The fact that they have lost the claim to wealth from their stock and bond holdings makes all the rest of us richer

Not really, since middle-class pensions were also fully vested in the scam.

Still are, but were then, too.

And many weren't! A lot were smart enough to become more defensive with age and cashed out and went into very defensive, lower yield assets, some even respected the FDIC account insurance maxima and distributed accordingly. Quite a few grandmas just held bonds, one in the extended family had GM bonds and got shafted. WTF is this nonsense, just because some don't pull out from "chasing that yield" and stay all-in til old age or keep flipping shacks and/or using their homes as ATMs doesn't mean these habits should be supported in any way, esp. since that continued support keeps widening the wealth-gap and even more esp. because it is inherently unfair and criminal! The responsible ones are the ones getting screwed now because their savings are being eaten up by inflation and ZIRP so that the uber-wealthy can keep levitating their assets.