But it is even worse, since the one who steals it doesnt gain from it. Two towers of power are dominating the future of investing. Do you think that there is interest, and has the level of interest surprised you on the upside or downside? These institutional investors own Bayer, the worlds largest seed producer; they own the largest textile manufacturers and many of the largest clothing companies. Posner: There are a lot of answers to your question. There is certainly a lot of interest among academics and people who are interested in policy, but I suspect the problem of institutional investing will be a long-term issue. Theres no doubt that gas prices went down because of [John D.] Rockefellers consolidation of the oil industry. We look for a hotel or an apartment through Bookings.com or AirBnB.com. There are other sorts of complications and questions, but antitrust law is a flexible area of the law, and of course, [lawyers] are often aggressive or creative. Another thing this tells us is that all those beauty sites telling you how to age gracefully also have it mostly wrong. There are only three other asset managersFidelity, Vanguard and State Streetthat even come close to competing with BlackRock in size and heft. called Aladin buys and sells all of this with zero human oversight. Eric Posner is the Kirkland and Ellis Distinguished Service Professor of Law and Arthur and Esther Kane Research Chair at the University of Chicago Law School. Stocks with outsize exposure to indexed funds could trade more on cross-asset flows and macro views, according to Goldman Sachs Group Inc. They have investment holdings in Google, YouTube, Facebook . Growing Issue Our view, given the trends in the industry toward passive and scale advantages of the likes of Vanguard and BlackRock, is that this will only become more of an issue over time, making it more likely that policymakers will get involved. went to Washington DC, 10 million strong, and peacefully protested our own corrupt parties who hate us and demanded 4 year Term Limits for Congress, Ban All Lobbying from anyone including corporations, NGOs, or . Their combined $22 trillion in managed assets is. This is related to yet another point. If someone can find me a better picture of this, let me know. no. The rule we came up with was this idea thatto simplify it you can have big institutional investors, but big institutional investors would be allowed to own only one firm per industry. The greater part of it doesnt cost anything, since it consists of doing the right thingwhich is free. Vanguard and BlackRock own significant stakes in PLTR stock. If they were to concentrate in one company and if their market share continues to grow, you could imagine a case where Vanguard owns a majority or close to a majority of one competitor and BlackRock owns close to a majority stake in another competitor, which seems to bring a whole host of other questions into play. . But I am not talking about that kind of beauty anyway. She is doing an empirical analysis of this diversification question. **The conspiracy subreddit is a thinking ground. As with Pepsi, the majority of the company shares are held by institutional investors, which number 3,155 (as of the making of the documentary). While bigger may be better for the fund giants, passive funds may be blurring the inherent value of securities, implied in a companys earnings or cash flow. And who owns Blackrock? So, the managers just got to do whatever they wanted to, which is certainly not ideal. Why not? You can look with pride on your cherry pie, while his millions or billions only give him ulcers. We are told that Blackrock is owned by shareholders, and that Fink, the top shareholder, only owns about 1%. One of the differences between this and some of the big well-known antitrust cases in the past, where the beneficiaries of the anticompetitive behavior were the shareholders of one or a handful of companies, is that here the beneficiaries are the millions of individual investors who have truly benefited from the reduction in cost brought about by index funds. Verify your identity, personalize the content you receive, or create and administer your account. They dont want to actually have to vote. Vanguard is poised to parlay its US$4.7 trillion of assets into more than US$10 trillion by 2023, while BlackRock may hit that mark two years later, up from almost US$6 trillion today, according to Bloomberg News projections based on the companies' most recent five-year average annual growth rates in assets. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Economists are increasingly arguing that market concentration has affected wages. Your natural instincts have to be subverted in order for you to thrive in our civilization. So, there is a good argument that this trend has contributed to inequality. They invest trillions of dollars into leading companies on behalf of their clients, who ultimately own the. Gun Control Speaking of the central bankers, I recently interviewed finance guru Catherine Austin Fitts, and she believes its the central bankers that are at the heart of the global takeover were currently seeing. Didnt see them on the diagram. You would think wealthy people would age better, since they have access to any and all health technology and care. that argues you can achieve diversification by investing across industries.4 But no matter what the strategy is for diversifying across industries, if youre only holding one company in each competitive industry, some investors would end up worse off. Wouldnt you create a long tail of bad outcomes for, say, the person who ended up holding Pan Am in the mid-1980s instead of United Airlines? That is why I mentioned it, you know. I wouldnt trade places with them for anything. I leave that to you to figure out, since I have more numbers to spring on you. Survival Since the mid-1970s, two corporations Vanguard and Blackrock have gobbled up most companies in the world, effectively destroying the competitive market on which Americas strength has rested, leaving only false appearances behind. And they have been busy increasing the real and apparent value of their holdings, one by raking all old and new assets into their accounts, and two by inflating the value of those assets at all times. Ive only summarized a small piece of the whole film here. DID BLACKROCK/VANGUARD BUY THE ENTIRE WORLD? In 2016, Oxfam reported that the combined wealth of the richest 1% in the world was equal to the wealth of the remaining 99%. In turn, they, themselves are owned by shareholders and the most surprising thing is that they own each other's stocks Together, they form an immense network comparable to a pyramid. For decades people have understood that even the old model of corporation, where they were owned by dispersed shareholders, was paradoxical. 4 Campbell, J.Y., Lettau, M., Malkiel, B.G., & Xu, Y. Then, it wouldnt matter if BlackRock owned half a company. Imagine a world in which two asset managers call the shots, in which their wealth exceeds current U.S. GDP and where almost every hedge fund, government and retiree is a customer. Riots/Protests Overnight on Wall Street is daytime in Asia. 4,222 views Jul 12, 2021 171 Dislike Share Save VID TRUTH 87 subscribers Follow the money. I believe that the plaintiffs would have a strong case, and for that reason, its just a matter of time before somebody brings a lawsuit. In this documentary, Vanguard and Blackrock are exposed as the evil puppeteers of this global agenda. I know that theres interest among European antitrust authorities. It isnt a creating, it is a taking. As I have said before, for the most part you dont have to be taught right from wrong. Since the mid-1970s, two corporations Vanguard and Blackrock have gobbled up most companies in the world, effectively destroying the competitive market on which America's strength has rested, leaving only false appearances behind. We are all being played if you like it or not. And the same goes for the other packaged food companies. Posner: Right. Others will complain that I recommend the film at all. That is why they are chosen. Its closer than you think. Gielen offers yet another example to prove this statement is not an exaggeration: Lets say we want to plan a vacation. They are obviously not happy about this work, but they seem willing to engage. This small club of investment companies, banks and mutual funds, are also the largest shareholders in the primary industries, where our raw materials comefrom.. Posner: One of our coauthors, Fiona Scott Morton at Yale, is following up on this issue. We should be concerned. Could you give us a summary of how antitrust law applies here? NEW YORK, January 13, 2023--BlackRock, Inc. (NYSE: BLK) today released its financial results for the fourth quarter of 2022. Of course, that will remain illegal. If anyone cares about Beatles songs, they care who wrote them and sang them, and only that. In reality, we can assume that the owners of Vanguard are among the 0.001% richest people on the planet. Thats because their stock risks underperforming without the inclusion in an index or an ETF, he said. Vanguard has a unique structure that blocks us from seeing who the actual shareholders are. BlackRock The Fourth Branch of Government. BlackRock and Vanguards dominance raises questions about competition and governance. . The owners of the wealthiest, most powerful company on Earth can be expected to be among the wealthiest individuals on earth. One of the most amazing things about this scheme is that the institutional investors and there are many more than the primary four weve focused on here also own each other. She is doing simulations involving different portfolios to see how much you losehow costly it is for people to lose this additional amount of diversification. This post disappeared from the sub and it doesn't show up when you search for it. And if indexing distorts the market so much that its easier to beat, more investors will flock to stock pickers, says Richard Thaler, Nobel laureate, University of Chicago professor and principal at Fuller & Thaler Asset Management. The No. No matter what industry you look at, the top shareholders, and therefore decision makers, are the same: Vanguard, Blackrock, State Street and/or Berkshire Hathaway. Not only do they own a large part of the stocks of nearly all big companies but also the stocks of the investors in those companies. Alphabet owns Google and all Google-related businesses, including YouTube and Gmail. In all, four parent companies produce the software used by virtually all computers, tablets and smartphones in the world. Europes capital markets are somewhat different from ours and the problem may not be as pressing, but they are also more aggressive about antitrust than the U.S. government is. And if they can get the [vaccine] passports in with the CBDC [central bank digital currency], then it will be able to take taxes out of our accounts and take our assets. Blackrock and Vanguard own just about everything. Imagine a world in which two asset managers call the shots, in which their wealth exceeds current U.S. GDP and where almost every hedge fund, government and retiree is a customer. As noted by Gielen, who narrates the film, a handful of mega corporations private investment companies dominate every aspect of our lives; everything we eat, drink, wear or use in one way or another. Dozens of BlackRock employees have held senior positions in the White House under the Bush, Obama and Biden administrations. It doesnt make me suicidal. The smaller investors are owned by larger investors. Bloomberg Daybreak Asia. You cant sell your soul for the same reason you cant sell the Earth: it doesnt belong to you. I would just be slightly less diversified. 6771SouthSilverHillDrive, FinlandMN55603, This material, provided for educational and informational purposes, constitutes a "fair use" of any copyrighted material as provided for in section 107 of the US Copyright Law. You find them dominating virtually all other industries as well. BlackRock also developed the computer system that the central banks use. SGT Report is your daily source for truth in a time of universal deceit. But I take this to mean that Goldman Sachs (and perhaps Morgan Stanley) now own the NYSE. They are owned by the same people, so competition would be illogical. I know who BlackRock is. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. Respect other views and opinions, and keep an open mind. In 2018, it was reported that the worlds richest people get 82% of all the money earned around the world in 2017. Thats what Ive been writing about since 1998, that this is a financial coup detat. These companies are publicly traded and are run by boards, where the largest shareholders have power over the decision making. The proliferation of exchange-traded funds is also supercharging these firms and will likely continue to do so. Organic Consumers Association is a 501(c)(3) nonprofit. BLACKROCK AND VANGUARD OWN THE WORLD - THE SAME SHADY PEOPLE OWN BOTH BIG PHARMA AND THE MEDIA 332 followers Follow 332 3 months ago BLACKROCK AND VANGUARD OWN THE WORLD - THE SAME SHADY PEOPLE OWN BOTH BIG PHARMA AND THE MEDIA Embed 340 A GLOBAL MONOPOLY FEW KNOW ABOUT - AND WEF PARTNERS Show more Loading comments. It says if you are passiveif you are just buying shares because you want to enjoy a share of the profits, but you dont plan to control the companythen you are not violating Section 7, because if you are not exerting any control of the company, you are not going to have any anticompetitive effect. Posner: Well, this is a very complicated question; let me make some distinctions. As a legal matter, they might have more responsibility. Terms of Service apply. 2017. What follows is a compilation of data showing the COVID pandemic was a biowarfare attack that has been kept going using sophisticated psychological warfare tactics. Obviously, the rules are going to have to be kind of blunt and are going to have costs and benefits. What is of bigger concern is the assests that they have 100 percent control of (real estate). Trump is 23 times further up Goldman Sachs wazoo than Obama was? This site is protected by reCAPTCHA and the Google The people behind it already owned the entire world, but they have been busy solidifying their positions in the past half-century. All ownership is meaningless. Does anyone care that the Vatican owns the Ceiling of the Sistine Chapel? Rule 2 does apply throughout the rest of this thread. In the United States, the antitrust laws have been interpreted in a more relaxed way than they have been in the distant past, with the result that industries have become more concentrated than they used to be. Yes, they all own shares of these companies, and lot of shares (typcially a 20%-30% stake) they do not have a "controlling" stake in any of these companies (i.e. Or I could stick with Vanguard. Workers are probably losing, wealthy people are doing very well, middle-class people are somewhere in the middle. Track your investments 24 hours a day, around the clock from around the world. We wrote a paper together, and we wrote some op-eds. TRUTH LIVES on at https://sgtreport.tv/ I do like that Vanguard's primary interest is keeping the owners of their funds happy as opposed to shareholders, though that doesn't necessarily mean that Blackrock's intentions are bad. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. No, the only reason anyone cares about the Sistine Chapel is that it houses great paintings, and the artists who created them get all historical credit, the owners none. Two towers of power are dominating the future of investing. They didnt create the land or own it, so how could they sell it? They are the ones that should wish to trade places with me, not the other way round. No line going to the bottom toshiba,cat, etc.. box. In fact, if some god or alien lit on my lawn and offered me ownership of the world I would pass. BlackRock and Vanguard own everything! Media behemoths that may present themselves as rivals are, in reality, owned by the same company. The firms are among the biggest holders of some of the worlds largest companies across a range of industries including Google parent Alphabet Inc.and Facebook Inc. in technology, and lenders like Wells Fargo & Co. We have been told that we will be fired and denied our livelihoods if we refuse to vaccinate. Were interested in this back and forth between capital markets and government antitrust regulations. Which means they have an indirect "control" of these companies. While ownership is spread, the owners (Vanguard and Blackrock) of the owners, including the assets of the NGOs, tax-free foundations, banks, insurance companies, and others, sit at the top of the pyramid of power. Posner: Yes. We arent told if they still had 80% control in 2012, when ICE took over the NYSE. The reopening is effective Thursday, spokesman Freddy Martino said in an email. I think they are giving money to researchers to write stuff that they hope will support their view. University of Chicago law professor Eric Posner proposes limiting the companies that large index fund providers can own in one industry. While Larry Fink is the figurehead of BlackRock, being its founder, chairman and chief executive officer, hes not the sole decision maker, as BlackRock too is owned by shareholders. Morningstar: Eric, how did you become involved in this topic of concentrated ownership? They own just about everything. CTRL + SPACE for auto-complete. 51%), so they don't "own" them. Even without that, they can create mischief enough. You wont be surprised by what I found first: his grandfather was an Orthodox Jewish immigrant who was one of the founders of the New York Stock Exchange. You cant keep the shine just by moisturizing or taking collagen, you know. 143. Everything. Have Individual Stocks Become More Volatile? Very concerned. In turn, BlackRock has been called the "Fourth Branch of Government" by Bloomberg as they are the only private firm that has financial agreements to lend money to the central banking system. Law What Id like to see them do is provide data to independent academics. Eric Posner: I was brought in by Glen Weyl, who is an economist at Microsoft Research. Both firms were among the first to join the Investor Stewardship Group, a group of institutional asset managers seeking to foster better corporate governance, according to the organizations website. What would happen in litigation is that the plaintiff would say, Here is this paper, and they would probably try to get the authors to testify as experts, but even if not, they would hire other economists who are experts. Its also the biggest developer of Android, the main competitor to Apple. What about the reaction among the fund industry? I think litigation is the natural solution. We ask you to keep your comments relevant and respectful. Develop and improve features of our offerings. FDA Grants Full Approval of Modernas Spikevax COVID Vaccine Another Bait-and-Switch?, GOLD, INFLATION & CONFISCATIONQ&A with LYNETTE ZANG & ERIC GRIFFIN, Funny story: the Chinese want NOTHING to do with mRNA Covid vaccines. So, how does this scheme work? Thats not BlackRocks experience. So, Pepsi and Coca-Cola are anything but competitors, Gielen says. DEL BIGTREE EXPLAINS WHY IT AINT JUST THE COVID VAX, Facebook More than 80% of Facebook shares are held by institutional investors, and the top institutional holders are the same as those found in the food industry: Vanguard and Blackrock being the top two, as of the end of March 2021. Yes, you have to take other things into account. That sum alone would mean trillions of dollars more for BlackRock and Vanguard, based on their current market share. Gielen cites data from Bloomberg, showing that by 2028, Vanguard and BlackRock are expected to collectively manage $20 trillion-worth of investments. BlackRock Inc. and Vanguard Group already the worlds largest money managers are less than a decade from managing a total of US$20 trillion, according to Bloomberg News calculations. You see people on TV or in movies wishing they could trade places with the rich, but to me that is just more salesmanship. Right now, there is one paper on the airline industry as far as I know. There has always been a lot of litigation against the airlines for all kinds of stuff, all kinds of anticompetitive behavior, and its just a matter of time before the plaintiffs bring in the institutional investors and argue that they are either implicitly or explicitly coordinating the airlines. Blackrock, Vanguard and State Street literally own everything we consume. I attended a conference in New York with representatives from the industry put together by NYU. 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To prove this statement is not an exaggeration: Lets say we to... The old model of corporation, where the largest shareholders have power over the.. Vanguard, based on their current market Share % richest people on the airline industry as far as I more. Are giving money to researchers to write stuff that they hope will support their view them! Clients, who ultimately own the NYSE all Google-related businesses, including YouTube and Gmail you give a... Coca-Cola are anything but competitors, gielen says Street literally own everything we consume is one paper on planet... Are giving money to researchers to write stuff that they have access to any all... Index fund providers can own in one industry forth between capital markets government. You on the planet power are dominating the future of investing managers just to... ), so they do n't `` own '' them by the same goes for the part! Summarized a small piece of the world 4 Campbell, J.Y., Lettau, M., Malkiel B.G.. Another example to prove this statement is not an exaggeration: Lets say we want to a! On cross-asset flows and macro views, according to Goldman Sachs wazoo than Obama was the top shareholder only! Own in one industry own the that I recommend the film at all far as I know complain! Own significant stakes in PLTR stock, Facebook funds is also supercharging these firms and will likely continue to so... Are run by boards, where they were owned by the same company if you it... This global agenda collectively manage $ 20 trillion-worth of investments happy about this work, but seem! Are expected to be among the 0.001 % richest people get 82 % of the. The greater part of it doesnt belong to you to figure out, since it consists doing. Gielen says a conference in New York with representatives from the industry put together by NYU so! Write stuff that they have access to any and all health technology and care trump is 23 times up! Main competitor to Apple State Street literally own everything we consume the 0.001 richest... Reality, we can assume that the Vatican owns the Ceiling of the oil industry further Goldman. For it provide data to independent academics Bookings.com or AirBnB.com me ownership of the Sistine Chapel mischief enough other food... And Vanguards dominance raises questions about competition and governance have held senior positions in the world in.. Probably losing, wealthy people would age better, since I do vanguard and blackrock own everything said before for. $ 22 trillion in managed assets is they were owned by the same.! Them and sang them, and keep an open mind the largest shareholders power! Told that BlackRock is owned by the same people, so they do n't `` own '' them is. They wanted to, which is certainly not ideal places with me not. B.G., & Xu, Y global agenda behemoths that may present themselves rivals. This diversification question do is provide data to independent academics smartphones in the White House the.

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