This article seems to be mostly insinuation rather than explanation. One thing I learned is that BlackRock has a contract with the Federal Reserve and some people don't like it. So what they are...
This article seems to be mostly insinuation rather than explanation. One thing I learned is that BlackRock has a contract with the Federal Reserve and some people don't like it. So what they are doing now? But to answer that, I get more out the New York Times article, which links to the contract itself. See Exhibit A for the investment objectives.
It appears that the Federal Reserve is giving the general orders and Blackrock is doing specific transactions. This contract is about purchasing commercial mortgage-backed securities, as part of the market bailout. I don't see Larry Fink's opinions about Social Security being relevant here? How are they going to do anything nefarious by purchasing some mortgage-backed securities instead of others? Maybe there is something wrong with this, but you won't find out from reading this article.
I'm not going to look closely at the other claims because, unfortunately, this is a general pattern for many leftist authors. They care more about their agenda than about figuring out what the heck is going on and explaining it clearly. And people who agree with them on politics eat it up, because the bad guys must be up to something bad.
I mean, I'm not an expert or anything, but I can tell when I'm learning something and when I'm not.
So, the idea is that BlackRock can buy their own ETF's and make money on it. But, apparently a lot of BlockRock ETF's have very low expense ratios. This doesn't seem all that lucrative? Here's an...
So, the idea is that BlackRock can buy their own ETF's and make money on it.
But, apparently a lot of BlockRock ETF's have very low expense ratios. This doesn't seem all that lucrative?
Edit: in retrospect, I've been argumentative and closed-minded about this. I'll just say that I'm in favor of curiosity about what BlackRock is up to, even if I'm sometimes lazy about investigating it myself, and can't in good conscience require anyone else to do homework either.
This article seems to be mostly insinuation rather than explanation. One thing I learned is that BlackRock has a contract with the Federal Reserve and some people don't like it. So what they are doing now? But to answer that, I get more out the New York Times article, which links to the contract itself. See Exhibit A for the investment objectives.
It appears that the Federal Reserve is giving the general orders and Blackrock is doing specific transactions. This contract is about purchasing commercial mortgage-backed securities, as part of the market bailout. I don't see Larry Fink's opinions about Social Security being relevant here? How are they going to do anything nefarious by purchasing some mortgage-backed securities instead of others? Maybe there is something wrong with this, but you won't find out from reading this article.
I'm not going to look closely at the other claims because, unfortunately, this is a general pattern for many leftist authors. They care more about their agenda than about figuring out what the heck is going on and explaining it clearly. And people who agree with them on politics eat it up, because the bad guys must be up to something bad.
I mean, I'm not an expert or anything, but I can tell when I'm learning something and when I'm not.
So, the idea is that BlackRock can buy their own ETF's and make money on it.
But, apparently a lot of BlockRock ETF's have very low expense ratios. This doesn't seem all that lucrative?
Here's an article I found: Cheap ETFs Are Hot, But BlackRock’s Premium Funds Pay the Bills.
Edit: in retrospect, I've been argumentative and closed-minded about this. I'll just say that I'm in favor of curiosity about what BlackRock is up to, even if I'm sometimes lazy about investigating it myself, and can't in good conscience require anyone else to do homework either.
Matt Levine wrote about this a bit today, or more generally what the Fed is up to when it's buying bonds: The Fed Will Buy Bond ETFs Now
BlackRock - name so generically dystopian, you wouldn't put into your cheap sci-fi novel.