WATCH: CNBC Panelist Says That US Should Allow Hedge Funds to be “Wiped Out”
The last time the nation had a severe economic downturn was in 2008. People grew angry at speculators and banks. Anger towards financial markets came to a head in 2011 where protesters held a month long demonstration in New York’s Zucotti Park, right outside of Wall St.
There continues to be little love lost for investment banks, who just like any other business, are being threatened by the current global pandemic. While appearing on a CNBC show on Thursday, Venture capitalist Chamath Palihapitiya, said that the country should just let hedge funds die.
“When a company fails, it does not fire their employees, it goes through a packaged bankruptcy. If anything what happens is the people who have the pensions inside the companies, the employees of these companies, end up owning more of the company. The people that get wiped out are the speculators that own the unsecured tranches of debt or the folks that own the equity. And by the way, those are the rules of the game. That’s right. These are the people that purport to be the most sophisticated investors in the world. They deserve to get wiped out.”
When asked by host Scott Wapner to elaborate, the venture capitalist continued, “Just be clear, like, who are we talking about? A hedge fund that serves a bunch of billionaire family offices? Who cares? Let ’em get wiped out. Who cares? They don’t get to summer in the Hamptons? Who cares!”
You can watch a clip of the segment below, courtesy of CNBC:
The U.S. shouldn’t bail out billionaires and hedge funds during the coronavirus pandemic, Social Capital CEO Chamath Palihapitiya says. “Who cares? Let them get wiped out.” https://t.co/dIbizumtqG pic.twitter.com/u8BSVvr0B1
— CNBC (@CNBC) April 9, 2020