this post was submitted on 20 Sep 2023
186 points (97.0% liked)
Technology
59299 readers
6829 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
The bond market is not the stock market. You're being disingenuous now.
It’s not as volatile, as the stock market, but bonds are still traded the same way and are still risky in certain cases.
Just as an example, Silicon Valley bank failed because they were invested heavily into bonds because they’re “safe” and when the Fed changed rates, they couldn’t liquidate their bonds quick enough to pay out their obligations because nobody wanted to buy the lower interest bonds they held when newer bonds were higher interest.
You can end up in cases where a pension fund can’t liquidate their bonds to make regular payouts during times like now when the Fed is increasing rates to combat inflation.
All investments are risky. With a pension, you’re trusting a company you work for to manage that risk for you in exchange for it being all or nothing based on if you stay there long enough.
With a 401k, you can manage your own risk level yourself. If you want to put it all into bonds, you can do that.
Please explain how GM not making as much profit this year because they are paying their workers more affects the bond market. Because you seem to have forgotten that's what we're talking about.