hnracer
Joined 6 years ago
Karma
197
Submissions
293
Member since
Sep 27
Joined 6 years ago
The site charges a small fee for the service of derisking the holdings.
This does seem to solve a real user pain point (risk and the complexity of hedging) and benefits from scale economies.
First is that the costs are hidden and complicated. We need a decent understanding of economics combined with an honest and deep analysis of the consequences of the specific policy to conceptualize why it's deleterious. Very few people will tick both boxes.
Second is that politicians want to be seen to be doing something. Even if leaving the market alone is the best of all options.