Doesn’t it depend on the ETF? Regular stock ETFs hold the shares and can just sell them for whatever they bring in a down market and give the money to the unfortunate customer. For other kinds of ETFs (e.g. leveraged) it would be much more of a problem.
ping
My new book entitled “Get Prepared Now” was just released
But I do doubt that the upside of over half of the globe entering the 21st century has been priced in and the stock market is a forward pricing entity.
In fact, I believe that the greatest stock market crash in U.S. history is coming.
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I also believe that we are on the verge of a major world economic system collapse.
I posted the following on another thread yesterday:
Most people are not seeing REALITY.
Here’s what Bill Holter of Miles Franklin has to say:
https://www.youtube.com/watch?v=60sA0iDQtLI
“That didn’t take long did it? I of course am speaking of the second overnight and global meltdown of the credit markets …in the last four business days! Before getting into this topic which I believe will soon be seen in retrospect and by historians far into the future as “THE” trigger event.” (sic)
(snip...)
“...this you must understand, “power” is currently debt. The control of debt is also the power of prices. Once debt breaks loose and trades out of the control of central banks, these central banks will also lose the control to price everything else. We have come very close twice in the last four trading days of the credit market control being broken. Will loss of control be on the next convulsion? Or the next? I nor anyone else knows this answer, I do know the greatest margin call in all of history will be issued … and it cannot be met!” http://blog.milesfranklin.com/a-foundation-of-bad-credit-is-no-foundation-at-all
Pray ... and prepare!
I am no financial expert or economist. My reading of history tells me that every time "money" is separated from intrinsic value, as with all the world's fiat currency, it always collapses. My reading of history also tells me that those who profit from this engineer use of the worthless fiat currency precisely to transform it into real wealth prior to the collapse. The collapse is normally followed up with war to both divert the wrath of those suffering and to kill them off.
We have been on this stairway to hell ever since Roosevelt stole our gold and Nixon took us off the gold standard. It's not a matter of if. It is a matter of when. And that could very well be now!
Those are sobering words.
And without a doubt, we are in the midst of a massive stock market bubble as well. The chaos that is coming is not just going to affect bonds. In fact, I believe that the greatest stock market crash in U.S. history is coming.
So when will it happen?
...
History suggests that it will happen when the Fed raises short term interest rates to the point that the yield curve is inverted.
Prepper ping.
Bump for reference.
3.08% on a 30 year bond is “skyrocketing”?
This article sounds like a lot of fear mongering to me. If ETF managers are lining up lines of credit ahead of possible withdrawals then they are insuring themselves which Lehman failed to do. And I certainly don’t see anything resembling the housing bubble that led to Lehman’s collapse.
banks have been denied the opportunity to trade like they used to. Volker rule. Sitting on a trillion in reserves and growing. Thats been accumulated in just a few short years. THey can loosen those reigns in any sort of meltdown.
Bump!