Mercury Rising 鳯女

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When even Lawrence Fink agrees that Wall Street has gone too far…

Posted by Charles II on April 24, 2015

Lawrence Fink, CEO of Blackrock, is one of the great pirates of our age. So, when even he is saying that executives are looting their companies and destroying the middle class, maybe someone will listen. Rex Nutting, Marketwatch:

There’s something seriously wrong with an economy that nurtures a few billionaires but can’t sustain the middle class.

Last week, the CEOs of America’s 500 biggest companies received a letter from Lawrence Fink, CEO of BlackRock BLK, +0.25% the largest asset manager in the world, saying exactly the same thing.

“The effects of the short-termist phenomenon are troubling both to those seeking to save for long-term goals such as retirement and for our broader economy,” Fink wrote, adding that favoring shareholders comes at the expense of investing in “innovation, skilled work forces or essential capital expenditures necessary to sustain long-term growth.”

In case you have forgotten who Larry Fink is, click here.

2 Responses to “When even Lawrence Fink agrees that Wall Street has gone too far…”

  1. jo6pacjo6pac said

    “The effects of the short-termist phenomenon are troubling both to those seeking to save for long-term goals such as retirement and for our broader economy,” Fink wrote, adding that favoring shareholders comes at the expense of investing in “innovation, skilled work forces or essential capital expenditures necessary to sustain long-term growth.”

    Whatever, I’m sure BR earned a hell of lot of money back in the day. The short term thinking has been a main stay for what 20yrs or more when Greed was declared good.
    I do agree with what this above sentence says but why now? The education system is being outsourced and thinking skills removed for testing and more testing. I really can’t see anything being done about this in Amerika and that’s sad. The overall brain washing propaganda has worked against the Amerikan people and most don’t even know its been done to them.

    • Charles II said

      Jo, Larry Fink is American capitalism. As the Vanity Fair link I added says,

      Though few Americans know his name, Larry Fink may be the most powerful man in the post-bailout economy. His giant BlackRock money-management firm controls or monitors more than $12 trillion worldwide—including the balance sheets of Fannie Mae and Freddie Mac, and the toxic A.I.G. and Bear Stearns assets taken over by the U.S. government last year.

      BlackRock has effectively become the leading manager of Washington’s bailout of Wall Street. The firm oversees the $130 billion of toxic assets that the U.S. government took on as part of the Bear Stearns sale and the rescue of A.I.G.; it also monitors the balance sheets of Fannie Mae and Freddie Mac—which together amount to some $5 trillion—and provides daily risk evaluations to the New York Fed on the $1.2 trillion worth of mortgage-backed securities it has purchased

      Compared to Larry Fink, Barry Ritholtz is not even the smallest of devils.

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