Posted on 01/19/2016 2:44:38 PM PST by SeekAndFind
Markets have been going haywire.
And according to Larry Fink, CEO of BlackRock, that has the potential to lead to layoffs through the first half of the year.
BlackRock is the world's largest investor, with about $4.5 trillion under management.
Fink said in an interview Friday morning with CNBC that the market volatility of late could affect CEO confidence and could lead to more layoffs.
He said (emphasis ours):
Having a market decline like this in the first couple of weeks of the year really, in my mind, puts a negativity across the economy. A negativity to every CEO who is looking at his or her stock price. A negativity related to business and the forward thinking about businesses. I actually believe you're going to start seeing more layoffs in the middle part of the first quarter, definitely the second quarter because of this. If we don't see some swift rebound -- and as I said I think we're going to have probably more pain before we have that lift -- but I do believe by the second half of the year the markets going to be higher.
His comments stand in contrast to those of Jamie Dimon, CEO of JPMorgan. On a conference call Thursday, Dimon said that while those in the finance industry look at market turmoil every day, it was unlikely that "143 million Americans who have jobs look at it that much."
"We're not forecasting a recession -- I think the US economy looks pretty good at this point," he continued.
(Excerpt) Read more at businessinsider.com ...
Hmmmm...just speculating but, what would happen if BlackRock took their 4.5 trillion and put it into Treasury notes?
RE: What if BlackRock took their 4.5 trillion and put it into Treasury notes?
Black Rock will have to sell off a huge chunk of their real estate portfolio first. They own commercial, residential and industrial properties everywhere.
Somebody would get lynched...........
North of Houston is Tomball, Texas. Baker-Hughes has a big presence there. There is land next to their campus that was to be developed into some kind of high tech business park to the tune of $50 million. It’s now on hold.
I wonder what Exxon’s plans are now. They built a huge complex just north of Houston. It’s so large it got its own freeway entrance and off ramp.
next thought...
what if the courts FORCED them to put all their assets into treasuries?
They stopped?
Bookmark
I’m amazed Houston has held up this long. It is like a snake with its head cut off and is still wiggling with the head watching. Surely the crap will hit the fan soon.
I drove clay and eldridge today. The plants are shuttering. They so over built for shale. So many new buildings that will soon be facing nearly empty parking lots down to maintenance workers and partial shifts. Two guys said goodbye today.
For the first time in 40 years the oilfield is collapsing and the rest of the economy is following it. Mid stream and the petrochemical downstream seem to still be doing OK. That is the East Side. North and West are going to become like a ghost town. Exxon will go on but there will be lots of empty offices. GE has three buildings on the West loop. I saw a lot of empty there today.
The EIA 2014 basis gasoline price is the lowest it has ever been since 1974. Inflation adjusted it is actually lower. This pit, compared to the lean winter years of ‘86 to 2000 look mild. That was 14 long years of living on shoe leather and creating solutions against the financial odds that finally capped with a hammering in ‘98 when OPEC / Saudi decided to euthanize the industry for a rebirth that got hammered again in 2001.
Now, there’s the answer. Layoff the workers who do the actual work. How about some of these overpaid blowhards take a pay cut when times get tough? Pretty soon there is not going to be enough workers to keep the company afloat and then it will really go belly up. As much as it hurts me to say this, but executive salaries are totally out of control. Companies these days are trying to out-do each other in pay packages for managers who are, for the most part, worthless.
I do not often get impressed, but when I do get impressed it’s by the number $4.5 trillion.
But they are still closing or tearing down small businesses and restaurants along Kirby, both north and south of 59 so they can build more multi-story condos and apartments. Not sure who they think will occupy the new buildings, particularly at the rate they now charge.
Some of my clients who have small offices in Houston renewed their leases as of 1/1/2016 and were given a choice between a three or a five year lease at a substantial increase.
The Houston city council was probably eagerly awaiting the increase in revenue from property taxes to help with their huge budget deficits. Turner has more on his plate to worry about than filling potholes.
Hopefully the economy diversified enough this time around so that we don’t have the collapse we had in 1985.
The courts are not immune to rope burns..............
I’ve been very vociferous about the FED wrangling our 401K funds to their benefit.
We live in times of “interesting fascism” where the “serfs” [AKA sheeple] just agree that the gummint knows best.
It is scary since, those of us (a financial minority) throw up the “danger-will-robinson” flags but are pushed down because, well demographics and democracy, and...
rayciss
Just look to what Argentina did to their citizens’ 401k Plans.....................it’s coming...............the Government will not let trillions of dollars just sit unnoticed..............
:: it’s coming ::
And it WILL be a corresponding “take” among the members of the uni-party.
Cruz/Rubio/Trump will go along with the travesty!
Robots are the future of all labor.
Black Rock helps fund J Street
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