The Great Taking.We don’t really own our stocks
Moderator: Global Moderator
The Great Taking.We don’t really own our stocks
Basically I believe the gist of it is a broker use your stocks as collateral when they are doing financial “things”. If they can’t pay the money they borrowed back your stock is going to the creditor.
I believe it’s article 8 of the uniform civil code.
Re: The Great Taking.We don’t really own our stocks
Deposit money into a bank for some interest, and you're lending to that bank, becomes the banks money.
Deposit money into a brokerage and it becomes the brokers money, but where they may buy the shares you like, in their name, and where they may lend out those shares if they so choose.
One way to reduce counter-party risk is to use leveraged ETF's, a third of the amount in a 3x stock fund for instance, keep the rest in physical in-hand gold and for cash deposits lend to the state (directly buy Treasury bills) as they're less inclined to not return your money (as they have money printing presses or can increase taxes rather than default). In contrast if instead you buy bonds via a broker, then again they're in the brokers name.
10% in a brokerage, 25% physical in-hand gold, 65% in Treasury Direct or suchlike https://www.portfoliovisualizer.com/bac ... lba8sITl3P
Deposit money into a brokerage and it becomes the brokers money, but where they may buy the shares you like, in their name, and where they may lend out those shares if they so choose.
One way to reduce counter-party risk is to use leveraged ETF's, a third of the amount in a 3x stock fund for instance, keep the rest in physical in-hand gold and for cash deposits lend to the state (directly buy Treasury bills) as they're less inclined to not return your money (as they have money printing presses or can increase taxes rather than default). In contrast if instead you buy bonds via a broker, then again they're in the brokers name.
10% in a brokerage, 25% physical in-hand gold, 65% in Treasury Direct or suchlike https://www.portfoliovisualizer.com/bac ... lba8sITl3P
Re: The Great Taking.We don’t really own our stocks
I believe ownership of stocks was previously private property and it has been changed. Your broker historical has been a custodian of your stocks. But now they are something else.
Re: The Great Taking.We don’t really own our stocks
Brokers used to just facilitate buying shares, shares were paper certificates issued to you and your name registered on the stocks shareholder register. Some deposited those share certificates into banks for safe keeping. Now more commonly you lend brokers money who'll buy shares in their name, might even lend them out to others.