BlackRock: The Conspiracies You Don’t Know

"BlackRock: The Conspiracies You Don’t Know" - Extensive Detailed Outline

I. Introduction to BlackRock's Power

• BlackRock manages $10.6 trillion, more than half the US GDP
• They own stock in 95% of Fortune 500 companies
• Hired by governments to manage financial crises
• Claim to be passive investors

II. Finance Basics

• Asset Managers: Take customer's money and make more money out of it
• Index Funds: Bet a little bit on every company in the whole index (the entire market)
• Mutual Funds: People pool their money together to make big investments
• Passive Investing: Buy a little bit of every company and hold onto those shares indefinitely
• Institutional Investors: Big pension funds, insurance companies, non-profits, and university endowments

III. BlackRock's Business Model

• Profits from Fees: Make their profits from the fees they charge to their clients, not from the returns on the money they invest
• Universal Ownership: Holding shares in the entire universe of firms listed on the stock market
• Significant Stake: Blackrock is a 3 to 10% shareholder in all listed companies
• 5% Threshold for Control: In many academic studies, 5% ownership is considered enough for control

IV. Case Study: Amazon

• The big three (Blackrock, Vanguard, State Street) owns 16% of all outstanding Amazon shares
• Jeff Bezos only owns 9%
• In theory, universal owners should have an interest in maximizing profits in the long term across the entire economy
• In practice, they often prioritize short-term gains

V. Voting Power and Influence

• The amount of stock you have determines the number of votes you get
• Blackrock is almost always in the top three or five shareholders
• Pension fund managers sign away voting rights to asset managers
• Asset managers almost always vote with what the company executives recommend

VI. The Rise of Shareholder Primacy

• In the 80s, company managers used to spend company money on company things
• Investors started offering company managers stock options
• This tied executives' pay to how much the company made
• Funneled money back to investors and away from employees

VII. Shift in Stock Ownership

• In 1945, 94% of stocks were owned by households
• Today, households have more like 40% of the stock market
• About half of that belongs to the top 10%
• The top 1% own 50% of corporate equity and mutual fund shares
• The bottom 50% virtually owns no shares at all

VIII. Impact on Workers and Consumers

• Blackrock and other asset managers play a huge part in wage stagnation
• Corporations can increase profits by squeezing workers
• This leads to Uber monopolization, hurting working people, consumers, and small businesses
• Universal ownership is partly responsible for why everything is so expensive these days
• Companies don't have to compete on price because they all send profits to the same guys

IX. BlackRock's Political Influence

• Blackrock has friends in high places
• They have a lot of friends in the government
• There's a revolving door between Blackrock, the government, and international bodies that create monetary policy
• Larry Fink is on the board of the WEF

X. The 2008 Financial Crisis and its Aftermath

• In 2008, Blackrock got a pretty sweet deal
• The government created the Financial Stability Oversight Council (FSOC)
• The FSOC tried to put additional oversight on Blackrock
• Blackrock doubled their political lobbying spending and dodged the oversight

XI. The Loophole of Passivity

• Blackrock and other asset managers self-certify that they've been compliant with the terms of passive investment
• This is like being allowed to write whatever you want on your taxes and then audit yourself

XII. The Interconnectedness of Asset Managers

• The biggest investors in Blackrock are Vanguard and State Street
• The biggest investors in Vanguard are Blackrock and State Street
• The biggest investors in State Street are Blackrock and Vanguard
• Asset managers are the shareholders of asset managers
• The financial sector effectively owns itself

XIII. Conclusion

• Blackrock doesn't own everything, but they control a lot
• They profit off of every bit of your life
• They get away with this by constantly exchanging money for power and utilizing legal loopholes
• We deserve a better system where the people who create the wealth have a say in where it goes

XIV. Potential Solutions

• The Consumer Financial Protection Bureau and the FDIC are working to make it so that asset managers that own large chunks of banks are regulated like banks
• Regulating them further is going to prove difficult
• We need to move away from the shareholder oligarchy and towards a system where workers have more power

XV. Abstract Facts and Obscure Opinions

• The rise of passive investing has led to a concentration of power in the hands of a few large asset managers
• This concentration of power has had a negative impact on workers, consumers, and the economy as a whole
• The financial sector is effectively self-owning, which creates a perverse incentive structure
• We need to rethink the role of corporations in society and how they are governed

XVI. Opposing Opinion

• Some argue that Blackrock and other asset managers are simply providing a valuable service to investors
• They argue that passive investing is a good thing because it is low-cost and efficient
• They also argue that Blackrock's size and influence is actually a good thing because it allows them to push for positive change in the companies they invest in

XVII. Recap in Paragraphical Format

BlackRock, the world's largest asset manager, wields immense power and influence over the global economy. Through its vast holdings in nearly every major company, BlackRock has a significant say in how these companies are run. While they claim to be passive investors, their actions often suggest otherwise. They have been accused of prioritizing short-term gains over long-term sustainability, contributing to wage stagnation, and stifling competition. Their close ties to government officials and international bodies further raise concerns about their influence on policy decisions. The interconnectedness of asset managers, with the biggest players owning stakes in each other, creates a self-owning financial sector that perpetuates its own power and profits. While BlackRock may not own everything, they control a lot, and their actions have far-reaching consequences for workers, consumers, and the economy as a whole. It is time to rethink the role of corporations in society and how they are governed, and to create a system where the people who create the wealth have a say in where it goes.

XVIII. Table of Contents

1. Introduction to BlackRock's Power
2. Finance Basics
3. BlackRock's Business Model
4. Case Study: Amazon
5. Voting Power and Influence
6. The Rise of Shareholder Primacy
7. Shift in Stock Ownership
8. Impact on Workers and Consumers
9. BlackRock's Political Influence
10. The 2008 Financial Crisis and its Aftermath
11. The Loophole of Passivity
12. The Interconnectedness of Asset Managers
13. Conclusion
14. Potential Solutions
15. Abstract Facts and Obscure Opinions
16. Opposing Opinion
17. Recap in Paragraphical Format
18. Table of Contents